EARNINGS PER SHARE

6 Months Ended

Dec. 31, 2014

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 8 - EARNINGS PER SHARE

Earnings per share (“EPS”) are measured at two levels: basic per share and diluted per share. Basic per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method.

In accordance with guidance related to share-based payment arrangements, the Company’s restricted stock awards are treated as outstanding for earning per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings.  As participating securities, the shares of restricted stock are included in the calculation of basic EPS using the two-class method.  For the periods presented, the amount of earnings allocated to the participating securities was not material.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share data):

	Three-Months Ended				Six-Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
	(Unaudited)				(Unaudited)
Net income, as reported	$	749	$	120	$	675	$	242
Weighted average common shares outstanding		15,281		15,295		15,285		15,319
Effect of dilutive stock options		142		143		143		83
Weighted average diluted common shares outstanding		15,423		15,438		15,428		15,402
Net income per common share
Basic	$	0.05	$	0.01	$	0.04	$	0.02
Diluted	$	0.05	$	0.01	$	0.04	$	0.02
Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive		392		445		237		653