EARNINGS PER SHARE

3 Months Ended

Jun. 30, 2024

EARNINGS PER SHARE

EARNINGS PER SHARE

4.      EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income or loss applicable to common stock 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 EPS because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares and common stock equivalents 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. For the three months ended June 30, 2024 and 2023, there were no stock options excluded in computing diluted EPS.

In November 2022, the Company’s Board of Directors adopted a stock repurchase program (the “November 2022 repurchase program”). Under the November 2022 repurchase program, the Company was authorized to repurchase up to $2.5 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on November 28, 2022 and continuing until the earlier of the completion of the authorized level of repurchases or May 28, 2023, depending upon market conditions. The Company completed the November 2022 repurchase program on May 5, 2023, repurchasing a total of 394,334 shares at an average cost of $6.34 per share for a total cost of $2.5 million. All shares repurchased under the November 2022 program were settled. The Company did not have any publicly announced repurchase plans or programs in place during the three months ended June 30, 2024.

The following table presents a reconciliation of the components used to compute basic and diluted EPS for the periods indicated:

	Three Months Ended June 30,
	2024		2023
(Dollars and share data in thousands, except per share data)
Basic EPS computation:
Numerator-net income	$	966	$	2,843
Denominator-weighted average common shares outstanding		21,111		21,136
Basic EPS	$	0.05	$	0.13
Diluted EPS computation:
Numerator-net income	$	966	$	2,843
Denominator-weighted average common shares outstanding		21,111		21,136
Effect of dilutive stock options		—		5
Weighted average common shares and common stock equivalents		21,111		21,141
Diluted EPS	$	0.05	$	0.13