EARNINGS PER SHARE

9 Months Ended

Dec. 31, 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 December 31, 2018 and 2017, all shares under the Company's ESOP were allocated. For the three and nine months ended December 31, 2018, there were no stock options excluded in computing diluted EPS. For the three and nine months ended December 31, 2017, stock options for 5,000 shares and 12,000 shares, respectively, of common stock were excluded in computing diluted EPS because they were antidilutive.

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2018		2017		2018		2017
Basic EPS computation:
Numerator-net income	$	4,388,000	$	1,520,000	$	13,059,000	$	7,233,000
Denominator-weighted average common shares outstanding		22,598,712		22,537,092		22,582,956		22,520,352
Basic EPS	$	0.19	$	0.07	$	0.58	$	0.32
Diluted EPS computation:
Numerator-net income	$	4,388,000	$	1,520,000	$	13,059,000	$	7,233,000
Denominator-weighted average common shares outstanding		22,598,712		22,537,092		22,582,956		22,520,352
Effect of dilutive stock options		65,207		85,037		75,197		88,251
Weighted average common shares and common stock equivalents		22,663,919		22,622,129		22,658,153		22,608,603
Diluted EPS	$	0.19	$	0.07	$	0.58	$	0.32