Earnings Per Share of Common Stock

6 Months Ended

Mar. 31, 2024

Earnings Per Share of Common Stock

Earnings Per Share of Common Stock

3.            Earnings Per Share of Common Stock

Basic net income per common share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per share includes the dilutive effect of restricted stock, if any, calculated using the treasury stock method. For unvested restricted stock, assumed proceeds under the treasury stock method would include unamortized compensation cost.

We are required to present earnings per share (“EPS”), utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities.

Basic and diluted earnings per share computations for the Company’s reported net income attributable to common stockholders are as follows:

	Three months ended				Six Months Ended
	March 31,		March 31,		March 31,		March 31,
	2024		2023		2024		2023
	(Amounts in thousands except per share data)
Net income	$	1,588	$	321	$	1,515	$	1,282
Less: net income attributable to nonvested common stock		(106)		(19)		(98)		(77)
Net income attributable to common shareholders	$	1,482	$	302	$	1,417	$	1,205
Weighted average total shares outstanding – basic(1)		9,719		9,376		9,586		9,241
Less: weighted average non–vested shares outstanding(1)		(649)		(594)		(619)		(558)
Weighted average number of common shares outstanding – basic(1)		9,070		8,782		8,967		8,683
Add: potential common shares from non–vested stock awards(1)		385		142		399		106
Weighted average common shares outstanding – diluted(1)		9,455		8,924	$	9,366		8,789
Net income per common share - basic(1)	$	0.16	$	0.03	$	0.16	$	0.14
Net income per common share - diluted(1)	$	0.16	$	0.03	$	0.15	$	0.14
(1) Retroactively adjusted for the effects of a stock split effected in the form of a 100% stock dividend (see Note 1)

Anti-dilutive securities include restricted stock, which are excluded from the diluted income per share computation. There were no anti-dilutive securities for the three and six months ended March 31, 2024. Non-vested restricted stock awards of 52 thousand and 202 thousand shares were excluded from the diluted net income per share calculation for the three and six months ended March 31, 2023, respectively.