Net Income (Loss) Per Share

3 Months Ended

Dec. 31, 2015

Note 9. Net Income (Loss) Per Share

The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income attributable to common stockholders by the weighted average shares outstanding during each period. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended
	December 31,
(in thousands, except share and per share data)	2014			2015
Numerator: Basic and Diluted
Net income	$	6,381		$	228
Dividends paid		(2,738)			(2,746)
Undistributed income (loss)		3,643			(2,518)
Percentage allocated to common shares		99.1	%		99.0	%
Undistributed income (loss) allocated to common shares		3,610			(2,493)
Dividends paid on common shares outstanding		2,713			2,719
Net income available to common shares		6,323			226
Denominator: Basic and Diluted
Weighted average common shares outstanding		12,333,550			12,345,564
Adjustment for dilutive potential common shares		12,923			7,520
Weighted average shares outstanding - Diluted		12,346,473			12,353,084

Basic net income per share	$	0.51		$	0.02
Diluted net income per share	$	0.51		$	0.02

Number of stock option shares excluded as their effect would be anti-dilutive		290,255			374,502
Number of restricted stock shares excluded as their effect would be anti-dilutive		112,750			121,410

(a) Percentage allocated to common shares - Weighted average
Common shares outstanding		12,333,550			12,345,564
Unvested participating shares		112,750			121,410
		12,446,300			12,466,974