2.	EARNINGS PER SHARE (“EPS”) AND CASH DIVIDENDS

Basic net income (or earnings) per share (“Basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding, excluding restricted stock awards for which the restrictions have not lapsed. Diluted net income (or earnings) per share (“Diluted EPS”) is computed by dividing net income by the weighted average number of common shares outstanding, after giving effect to the potential dilution, if applicable, from the assumed exercise of outstanding stock options and from the assumed lapse of restrictions on restricted stock awards. Common shares issuable in connection with the award of performance-based restricted stock units (“RSUs”) are excluded from the calculation of EPS until the RSUs’ performance conditions are achieved and the shares in respect of the RSUs become issuable (see Note 9).

The following tables summarize the Basic EPS and Diluted EPS calculations (in thousands, except per share amounts):

	Three Months Ended March 31,
	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS

Basic EPS	$	3,247		13,458	$	0.24	$	5,877		13,273	$	0.44
Incremental shares from the assumed exercise of outstanding stock options		—		72				—		92
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		35				—		37
Diluted EPS	$	3,247		13,565	$	0.24	$	5,877		13,402	$	0.44

	Six Months Ended March 31,
	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS

Basic EPS	$	7,506		13,415	$	0.56	$	9,719		13,231	$	0.73
Incremental shares from the assumed exercise of outstanding stock options		—		96				—		96
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		53				—		46
Diluted EPS	$	7,506		13,564	$	0.55	$	9,719		13,373	$	0.73

2.	EARNINGS PER SHARE (“EPS”) AND CASH DIVIDENDS (Continued)

In addition to performance-based RSUs, for the three and six months ended March 31, 2014, stock options and unvested restricted stock totaling 135,696 and 110,096 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive. For the three and six months ended March 31, 2013, stock options and unvested restricted stock totaling 255,527 and 278,066 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive.

During the six months ended March 31, 2014 and 2013 the Company paid cash dividends totaling $5,305,000 (or $0.3875 per share) and $4,725,000 (or $0.35 per share), respectively. On April 17, 2014 the Company declared a quarterly cash dividend of $0.20 per share payable on June 27, 2014, which is projected to total approximately $2,740,000.