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 December 31, 2019 and 2018, there were outstanding options to purchase 554,500 shares and 509,000 shares of the Corporation’s common stock, respectively. Of those shares, as of December 31, 2019 and 2018, there were no shares and 45,000 shares, respectively, which were excluded from the diluted EPS computation as their effect was anti-dilutive. As of December 31, 2019 and 2018, there were outstanding restricted stock awards of 225,500 shares and 12,000 shares, respectively.

The following table provides the basic and diluted EPS computations for the quarter and six months ended December 31, 2019 and 2018, respectively.


	For the Quarter Ended				For the Six Months Ended
	December 31,				December 31,
(In Thousands, Except Earnings Per Share)	2019		2018		2019		2018
Numerator:
Net income – numerator for basic earnings per share and diluted earnings per share - available to common stockholders	$	2,398	$	1,958	$	4,960	$	3,781

Denominator:
Denominator for basic earnings per share:
Weighted-average shares		7,482		7,506		7,482		7,468

Effect of dilutive shares:
Stock options		133		89		133		90
Restricted stock		43		7		36		21

Denominator for diluted earnings per share:
Adjusted weighted-average shares and assumed conversions		7,658		7,602		7,651		7,579

Basic earnings per share	$	0.32	$	0.26	$	0.66	$	0.51
Diluted earnings per share	$	0.31	$	0.26	$	0.65	$	0.50