EARNINGS PER SHARE

3 Months Ended

Jun. 30, 2018

5.	EARNINGS PER SHARE

Basic earnings per share ("EPS") is computed by dividing net income or loss applicable to common stock by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Diluted EPS is computed by dividing net income or loss applicable to common stock by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company's common stock during the period. Common stock equivalents arise from the assumed exercise of outstanding stock options. Shares owned by the Company's ESOP that have not been allocated are not considered to be outstanding for the purpose of computing basic and diluted EPS. As of June 30, 2018, all shares under the Company's ESOP were allocated. As of June 30, 2017, there were 24,633 shares which had not been allocated under the Company's ESOP. For the three months ended June 30, 2018, there were no stock options excluded in computing diluted EPS. For the three months ended June 30, 2017, stock options to purchase 19,000 shares of common stock were excluded in computing diluted EPS because their effect would be antidilutive.

The following table presents a reconciliation of the components used to compute basic and diluted EPS for the periods indicated:

	Three Months Ended June 30,
	2018		2017
Basic EPS computation:
Numerator-net income	$	4,442,000	$	2,654,000
Denominator-weighted average common shares outstanding		22,570,179		22,504,852
Basic EPS	$	0.20	$	0.12
Diluted EPS computation:
Numerator-net income	$	4,442,000	$	2,654,000
Denominator-weighted average common shares outstanding		22,570,179		22,504,852
Effect of dilutive stock options		81,553		84,588
Weighted average common shares and common
stock equivalents		22,651,732		22,589,440
Diluted EPS	$	0.20	$	0.12