EARNINGS PER SHARE ("EPS")

9 Months Ended

Mar. 31, 2016

3. EARNINGS PER SHARE (“EPS”) – Non-vested shares with non-forfeitable dividend rights are considered participating securities and, thus, subject to the two-class method pursuant to ASC 260, Earnings per Share, when computing basic and diluted earnings per share. The Company’s restricted share awards contain non-forfeitable dividend rights but do not contractually obligate the holders to share in the losses of the Company. Accordingly, during periods of net income, unvested restricted shares are included in the determination of both basic and diluted EPS. During periods of net loss, these shares are excluded from both basic and diluted EPS.

Basic EPS is based on the weighted average number of common shares and unvested restricted shares outstanding, adjusted for ESOP shares not yet committed to be released. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as outstanding stock options, were exercised or converted into common stock or resulted in the issuance of common stock. Diluted EPS is calculated by adjusting the weighted average number of shares of common stock outstanding to include the effects of contracts or securities exercisable or which could be converted into common stock, if dilutive, using the treasury stock method.

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2016		2015		2016		2015

Basic weighted average outstanding shares		4,027,432		4,428,861		4,173,027		4,478,328
Effect of dilutive stock options		30,168		—		32,143		—
Diluted weighted average outstanding shares		4,057,600		4,428,861		4,205,170		4,478,328