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 10).

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

	Three Months Ended June 30,
	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS

Basic EPS	$	5,476		13,479	$	0.41	$	8,591		13,302	$	0.65
Incremental shares from the assumed exercise of outstanding stock options		—		58				—		104
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		40				—		59
Diluted EPS	$	5,476		13,577	$	0.40	$	8,591		13,465	$	0.64

	Nine Months Ended June 30,
	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS

Basic EPS	$	12,982		13,436	$	0.97	$	18,310		13,255	$	1.38
Incremental shares from the assumed exercise of outstanding stock options		—		83				—		99
Incremental shares from the assumed lapse of restrictions on restricted stock awards		—		49				—		50
Diluted EPS	$	12,982		13,568	$	0.96	$	18,310		13,404	$	1.37

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

In addition to performance-based RSUs, for the three and nine months ended June 30, 2014 stock options and unvested restricted stock totaling 236,711 and 152,301 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive. For the three and nine months ended June 30, 2013 stock options and unvested restricted stock totaling 207,527 and 254,553 shares, respectively, were excluded from the calculation of Diluted EPS as their effect would have been antidilutive.

During the nine months ended June 30, 2014 and 2013 the Company paid cash dividends totaling $8,040,000 (or $0.5875 per share) and $7,263,000 (or $0.5375 per share), respectively. On July 17, 2014 the Company declared a quarterly cash dividend of $0.20 per share payable on September 26, 2014, which is projected to total approximately $2,740,000.