Net Income Per Common Share

9 Months Ended

Jun. 30, 2023

NET INCOME PER COMMON SHAREBasic 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 and nine months ended June 30, 2023 and 2022 is as follows (dollars in thousands, except per share amounts):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Basic net income per common share computation
Numerator – net income	$	6,306	$	5,738	$	20,476	$	16,550





Denominator – weighted average common shares outstanding	8,156,831		8,279,436		8,203,255		8,324,371

Basic net income per common share	$	0.77	$	0.69	$	2.50	$	1.99

Diluted net income per common share computation
Numerator – net income	$	6,306	$	5,738	$	20,476	$	16,550





Denominator – weighted average common shares outstanding	8,156,831		8,279,436		8,203,255		8,324,371
Effect of dilutive stock options (1)	57,144		70,423		75,824		82,606

Weighted average common shares outstanding - assuming dilution	8,213,975		8,349,859		8,279,079		8,406,977

Diluted net income per common share	$	0.77	$	0.69	$	2.47	$	1.97

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(1) For the three and nine months ended June 30, 2023, average options to purchase 256,503 and 203,823 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. For the three and nine months ended June 30, 2022, average options to purchase 201,150 and 205,221 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.