Basic net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and participates in non-forfeitable dividends during the vesting period. Diluted net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares and common stock equivalents outstanding for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company’s common stock during the period. Common stock equivalents arise from the assumed exercise of outstanding stock options.

Information regarding the calculation of basic and diluted net income per common share for the three and nine months ended June 30, 2026 and 2025, is as follows (dollars in thousands, except per share amounts):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2026		2025		2026		2025
Basic net income per common share computation
Numerator – net income	$	7,720	$	7,100	$	23,068	$	20,715





Denominator – weighted average common shares outstanding	7,805,218		7,893,308		7,855,474		7,929,626

Basic net income per common share	$	0.99	$	0.90	$	2.94	$	2.61

Diluted net income per common share computation
Numerator – net income	$	7,720	$	7,100	$	23,068	$	20,715





Denominator – weighted average common shares outstanding	7,805,218		7,893,308		7,855,474		7,929,626
Effect of dilutive stock options (1)	50,189		28,454		44,754		33,786

Weighted average common shares outstanding - assuming dilution	7,855,407		7,921,762		7,900,228		7,963,412

Diluted net income per common share	$	0.98	$	0.90	$	2.92	$	2.60

(1) For the three months ended June 30, 2026, all outstanding options were included in the computation of diluted earnings per common share. For the nine months ended June 30, 2026, average options to purchase 273 shares of common stock were outstanding but were not included in the computation of diluted earnings per common share because their effect would have been anti-dilutive. For the three and nine months ended June 30, 2025, average options to purchase 137,720 and 120,049 shares of common stock, respectively, were outstanding but were not included in the computation of diluted earnings per common share because their effect would have been anti-dilutive.