Note 3: Earnings Per Share

Basic earnings per share ("EPS") excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Corporation.

As of September 30, 2019 and 2018, there were outstanding options to purchase 560,250 shares and 514,000 shares of the Corporation’s common stock, respectively. Of those shares, as of September 30, 2019 and 2018, there were no shares and 20,000 shares, respectively, which were excluded from the diluted EPS computation as their effect was anti-dilutive. As of September 30, 2019 and 2018, there were outstanding restricted stock awards of 225,500 shares and 13,500 shares, respectively.

The following table provides the basic and diluted EPS computations for the quarters ended September 30, 2019 and 2018, respectively.


	For the Quarters Ended
	September 30,
(In Thousands, Except Earnings Per Share)	2019		2018
Numerator:
Net income – numerator for basic earnings per share and diluted earnings per share - available to common stockholders	$	2,562	$	1,823

Denominator:
Denominator for basic earnings per share:
Weighted-average shares		7,482		7,431

Effect of dilutive shares:
Stock options		136		91
Restricted stock		30		35

Denominator for diluted earnings per share:
Adjusted weighted-average shares and assumed conversions		7,648		7,557

Basic earnings per share	$	0.34	$	0.25
Diluted earnings per share	$	0.33	$	0.24