EARNINGS PER SHARE

3 Months Ended

Dec. 31, 2016

6. EARNINGS PER SHARE

Basic earnings per share available to common shareholders is calculated by dividing net income less preferred stock dividend requirements by the weighted average common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing income from operations less preferred stock dividend requirements (when anti-dilutive) by the sum of the weighted average common shares outstanding and the weighted average dilutive options, using the treasury stock method.


	For the three months ended December
	2016				2015
	Basic		Diluted		Basic		Diluted
Weighted average common shares outstanding		681,668		681,668		625,356		625,356
Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1)		—		7,008		—		108,128
Weighted average number of shares outstanding		681,668		688,676		625,356		733,484
Net income	$	1,046,464	$	1,046,464	$	1,355,622	$	1,355,622
Deduct: convertible preferred stock dividends (2)		—		—		(49,177)		—
Net income available to common shareholders	$	1,046,464	$	1,046,464	$	1,306,445	$	1,355,622

Net earnings per share available to common shareholders	$	1.54	$	1.52	$	2.09	$	1.85

(1)

Diluted earnings per share calculation includes all stock options, convertible preferred stock, and restricted stock units deemed to be dilutive.

(2)

Diluted earnings per share calculation excludes dividends for convertible preferred stock deemed to be dilutive, as those amounts are assumed to have been converted to common stock of the Company.