Earnings Per Share

3 Months Ended

Sep. 30, 2020

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, 2020 and 2019, there were outstanding options to purchase 554,500 shares and 560,250 shares of the Corporation’s common stock, respectively. Of those shares, as of September 30, 2020 and 2019, there were 419,500 shares and no shares, respectively, which were excluded from the diluted EPS computation as their effect was anti-dilutive. As of September 30, 2020 and 2019, there were outstanding restricted stock awards of 209,000 shares and 225,500 shares , respectively. The outstanding restricted stock had no dilutive effect for the quarter ended September 30, 2020, but had a dilutive effect for the quarter ended September 30, 2019.

The following table provides the basic and diluted EPS computations for the quarter ended September 30, 2020 and 2019, respectively.


	For the Quarter Ended
	September 30,
(In Thousands, Except Earnings Per Share)	2020		2019
Numerator:
Net income – numerator for basic earnings per share and diluted earnings per share - available to common stockholders	$	1,485	$	2,562

Denominator:
Denominator for basic earnings per share:
Weighted-average shares		7,436		7,482

Effect of dilutive shares:
Stock options		21		136
Restricted stock		—		30

Denominator for diluted earnings per share:
Adjusted weighted-average shares and assumed conversions		7,457		7,648

Basic earnings per share	$	0.20	$	0.34
Diluted earnings per share	$	0.20	$	0.33