Note 8 - Earnings Per Share

6 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 8. EARNINGS PER SHARE

The basic earnings per share (“EPS”) calculation excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution of EPS that could occur if options to issue common stock were exercised.

The following table sets forth the computation for basic and diluted EPS.

	Six Months Ended				Three Months Ended
	December 31,				December 31,
(dollars in thousands, except per share data)	2022		2021		2022		2021
Net Income	$	976	$	5,980	$	869	$	3,590
Weighted average number of outstanding shares
Basic		14,919,317		15,025,953		14,889,946		15,021,792
Effect of dilutive securities
Stock options		376		1,054		85		1,022
Diluted		14,919,693		15,027,007		14,890,031		15,022,814
Earnings Per Share
Basic Net Income per share	$	0.07	$	0.40	$	0.06	$	0.24
Diluted Net Income per share	$	0.07	$	0.40	$	0.06	$	0.24

The diluted EPS calculation excludes the effect of stock options when their exercise prices exceed the average market price for the period, as their inclusion would be anti-dilutive. For the three and six months ended December 31, 2022, employee stock options for 229,000 were excluded from diluted EPS. For the three and six months ended December 31, 2021, employee stock options for 231,000 were excluded from diluted EPS.

During the three and six months ended December 31, 2022, and 2021, the Company repurchased class A shares on the open market. Upon repurchase, these shares are classified as treasury shares and are deducted from outstanding shares in the earnings per share calculation.