Net Income Per Common Share

3 Months Ended

Dec. 31, 2022

NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares outstanding during the period without considering any dilutive items. Diluted net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company’s common stock during the period. Common stock equivalents arise from the assumed conversion of outstanding stock options to purchase common stock.

Information regarding the calculation of basic and diluted net income per common share for the three months ended December 31, 2022 and 2021 is as follows (dollars in thousands, except per share amounts):


	Three Months Ended December 31,
	2022		2021
Basic net income per common share computation
Numerator – net income	$	7,507	$	5,485





Denominator – weighted average common shares outstanding	8,232,273		8,356,066

Basic net income per common share	$	0.91	$	0.66

Diluted net income per common share computation
Numerator – net income	$	7,507	$	5,485





Denominator – weighted average common shares outstanding	8,232,273		8,356,066
Effect of dilutive stock options (1)	86,460		92,834

Weighted average common shares outstanding - assuming dilution	8,318,733		8,448,900

Diluted net income per common share	$	0.90	$	0.65

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(1) For the three months ended December 31, 2022 and 2021, average options to purchase 182,000 and 210,052 shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per common share, because their effect would have been anti-dilutive.