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Earnings Per Share
 9 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Share

3. Earnings Per Share

The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. As such, earnings per share is calculated using the two-class method. Basic earnings per share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. Diluted earnings per share includes the dilutive effect of additional potential common shares from stock compensation awards. Earnings per share have been computed based on the following weighted average number of common shares outstanding:

 

     Three months ended
December 31,
(In thousands, except per
share amounts)		      Nine months ended
December 31,
(In thousands, except per
share amounts)		  
     2016     2015      2016     2015  

Numerator:

          

Net income per consolidated statements of income

    $ 1,606      $ 2,727       $ 6,479      $ 9,653   

Less: Allocation of earnings to participating securities

      (22 )      —          (76 )      —    
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income allocated to common stock

      1,584      $ 2,727         6,403      $ 9,653   
  

 

 

    

 

 

     

 

 

    

 

 

  

Basic earnings per share computation:

          

Net income allocated to common stock

    $ 1,584      $ 2,727       $ 6,403      $ 9,653   
  

 

 

    

 

 

     

 

 

    

 

 

  

Weighted average common shares outstanding, including shares considered participating securities

      7,697        7,623         7,763        7,620   

Less: Weighted average participating securities outstanding

      (107 )      —          (91 )      —    
  

 

 

    

 

 

     

 

 

    

 

 

  

Weighted average shares of common stock

      7,590        7,623         7,672        7,620   
  

 

 

    

 

 

     

 

 

    

 

 

  

Basic earnings per share

    $ 0.21        0.36       $ 0.83        1.27   
  

 

 

    

 

 

     

 

 

    

 

 

  

Diluted earnings per share computation:

          

Net income allocated to common stock

    $ 1,584      $ 2,727       $ 6,403      $ 9,653   

Undistributed earnings re-allocated to participating securities

      —          —          —          —    
  

 

 

    

 

 

     

 

 

    

 

 

  

Numerator for diluted earnings per share

    $ 1,584      $ 2,727       $ 6,403      $ 9,653   

Weighted average common shares outstanding for basic earnings per share

      7,590        7,623         7,672        7,620   

Incremental shares from stock options

      60        148         60        158   
  

 

 

    

 

 

     

 

 

    

 

 

  

Weighted average shares and dilutive potential common shares

      7,650        7,771         7,732        7,778   
  

 

 

    

 

 

     

 

 

    

 

 

  

Diluted earnings per share

    $ 0.21      $ 0.35       $ 0.83      $ 1.24   
  

 

 

    

 

 

     

 

 

    

 

 

  

Diluted earnings per share do not include the effect of certain stock options as their impact would be anti-dilutive. For the three and nine months ended December 31, 2016 and 2015, potential shares of common stock from stock options totaling 160,000 and 165,000, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive.