Earnings Per Share

3 Months Ended

Jun. 30, 2021

3. Earnings Per Share

The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. Earnings per share is calculated using the two-class method, as such awards are more dilutive under this method than the treasury stock 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 June 30, (In thousands, except per share amounts)
	2021			2020
Numerator
Net income per consolidated statements of income	$	1,729		$	1,430
Percentage allocated to shareholders *		99	%		99	%
Numerator for basic and diluted earnings per share	$	1,720		$	1,422

Denominator
Denominator for Basic earnings per share - weighted-average shares outstanding		7,650			7,758
Dilutive effect of stock options		—			—
Denominator for diluted earnings per share		7,650			7,758

Per share income from continuing operations
Basic	$	0.22		$	0.18
Diluted		0.22			0.18

* Basic weighted-average shares outstanding		7,650			7,758
Basic weighted-average shares outstanding and unvested restricted stock units expected to vest		7,689			7,801
Percentage allocated to shareholders		99	%		99	%