EARNINGS PER SHARE

6 Months Ended

Mar. 31, 2017

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 March
	2017				2016
	Basic		Diluted		Basic		Diluted
Weighted average common shares outstanding		678,938		678,938		606,080		606,080
Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1)		—		9,078		—		106,467
Weighted average number of shares outstanding		678,938		688,016		606,080		712,547
Net income	$	488,483	$	488,483	$	1,146,624	$	1,146,624
Deduct: convertible preferred stock dividends (2)		—		—		(48,643)		—
Net income available to common shareholders	$	488,483	$	488,483	$	1,097,981	$	1,146,624

Net earnings per share available to common shareholders	$	0.72	$	0.71	$	1.81	$	1.61

(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.


	For the six months ended March
	2017				2016
	Basic		Diluted		Basic		Diluted
Weighted average common shares outstanding		680,318		680,318		615,768		615,768
Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock (1)		—		9,872		—		107,549
Weighted average number of shares outstanding		680,318		690,190		615,768		723,317
Net income	$	1,534,947	$	1,534,947	$	2,502,246	$	2,502,246
Deduct: convertible preferred stock dividends (2)		—		—		(97,820)		—
Net income available to common shareholders	$	1,534,947	$	1,534,947	$	2,404,426	$	2,502,246

Net earnings per share available to common shareholders	$	2.26	$	2.22	$	3.90	$	3.46

(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.