COMPUTATIONS OF EARNINGS PER SHARE
Quarters Ended
March 31, 1997
Less
Total Shares Unallocated Shares Used For
Outstanding ESOP Shares EPS Calculation
----------- ----------- ---------------
December 31, 1996 ................. 1,079,285 76,321 1,002,964
January 31, 1997 .................. 1,079,285 76,321 1,002,964
February 28, 1997.................. 1,079,285 76,321 1,002,964
March 31, 1997 .................... 1,079,285 76,321 1,002,964
Weighted average number of shares outstanding for the
quarter ended March 31, 1997, for earnings per share
calculation (before effects of dilution) 1,002,964
Earnings Per Share Before
Effects of Dilution: = $185,793 (net income)/1,002,964
= $ .19 per share
Stock options outstanding at March 31, 1997: 101,321
Stock price for six month period:
High: $19.00 Low: $15.75 Average: $17.781
------ ------ -------
Beginning: $16.375 Ending: $17.75
------- -------
Exercise price of stock options: $14.125 per share
The potential dilution from stock options is less than 20% of the number of
common shares outstanding and the market price of the common stock exceeded the
exercise price for all months of the period. Therefore, the treasury stock
method was used for calculating the dilutive effects of the common stock
equivalents (stock options).
Primary Earnings Per Share
Under the treasury stock method, for primary earnings per share, it is assumed
that all of the outstanding options are exercised at their exercise price and
the cash proceeds received by the Company are used to purchase treasury shares
at the average market price of the common stock for the quarter. The difference
in the number of shares that could be purchased under this assumption and the
total number of stock options is added to the weighted average number of shares
outstanding for the quarter to calculate "Earnings Per Common Share and Common
Stock Equivalents".
Additional shares to be added
to common shares outstanding = 101,321 - [(101,321 * $14.125)/$17.781]
= 101,321 - 80,488
= 20,833 shares
Primary Earnings Per Share = $185,793 (net income) / 1,002,964 + 20,833
= $185,793 / 1,023,797
= $.18 per share
Fully Diluted Earnings Per Share
Under the treasury stock method, for fully diluted earnings per share, it is
assumed that all of the outstanding options are exercised at their exercise
price and the cash proceeds received by the Company are used to purchase
treasury shares at the ending market price of the common stock for the quarter.
The difference in the number of shares that could be purchased under this
assumption and the total number of stock options is added to the weighted
average number of shares outstanding for the quarter to calculate "Earnings Per
Common Share Assuming Full Dilution".
Additional shares to be added
to common shares outstanding = 101,321 - [(101,321 * $14.125)/$17.781]
= 101,321 - 80,488
= 20,833 shares
Fully Diluted Earnings Per Share = $185,793 (net income) / 1,002,964 + 20,833
= $185,793 / 1,023,797
= $.18 per share
Since the average market price was greater than the ending market price, it was
used in the calculation of fully diluted earnings per share rather than the
ending market price.
The dilution in earnings per share from all potential dilution is less than 3%
[$.19 per share assuming no dilution compared to $.18 per share assuming full
dilution.] Therefore, the effects of dilution are considered not material and
only a single earnings per share is presented in the income statement -
"Earnings Per Common Share".
COMPUTATIONS OF EARNINGS PER SHARE
Six Months Ended
March 31, 1997
Less
Total Shares Unallocated Shares Used For
Outstanding ESOP Shares EPS Calculation
----------- ----------- ---------------
September 30, 1996 ............. 1,079,285 76,321 1,002,964
October 31, 1996 ............... 1,079,285 76,321 1,002,964
November 30, 1996 .............. 1,079,285 76,321 1,002,964
December 31, 1996 .............. 1,079,285 76,321 1,002,964
January 31, 1997 ............... 1,079,285 76,321 1,002,964
February 28, 1997 .............. 1,079,285 76,321 1,002,964
March 31, 1997 ................. 1,079,285 76,321 1,002,964
Weighted average number of shares outstanding for the
six months ended March 31, 1997, for earnings per
share calculation (before effects of dilution)
1,002,964
Earnings Per Share Before
Effects of Dilution: = $369,023 (net income)/1,002,964
= $ .37 per share
Stock options outstanding at March 31, 1997: 101,321
Stock price for six month period:
High: $19.00 Low: $14.75 Average: $16.696
------ ------ -------
Beginning: $15.50 Ending: $17.75
------ -------
Exercise price of stock options: $14.125 per share
The potential dilution from stock options is less than 20% of the number of
common shares outstanding and the market price of the common stock exceeded the
exercise price for all months of the period. Therefore, the treasury stock
method was used for calculating the dilutive effects of the common stock
equivalents (stock options).
Primary Earnings Per Share
Under the treasury stock method, for primary earnings per share, it is assumed
that all of the outstanding options are exercised at their exercise price and
the cash proceeds received by the Company are used to purchase treasury shares
at the average market price of the common stock for the quarter. The difference
in the number of shares that could be purchased under this assumption and the
total number of stock options is added to the weighted average number of shares
outstanding for the quarter to calculate "Earnings Per Common Share and Common
Stock Equivalents".
Additional shares to be added
to common shares outstanding = 101,321 - [(101,321 * $14.125)/$16.696]
= 101,321 - 85,719
= 15,602 shares
Primary Earnings Per Share = $369,023 (net income) / 1,002,964 + 15,602
= $369,023 / 1,018,556
= $.36 per share
Fully Diluted Earnings Per Share
Under the treasury stock method, for fully diluted earnings per share, it is
assumed that all of the outstanding options are exercised at their exercise
price and the cash proceeds received by the Company are used to purchase
treasury shares at the ending market price of the common stock for the quarter.
The difference in the number of shares that could be purchased under this
assumption and the total number of stock options is added to the weighted
average number of shares outstanding for the quarter to calculate "Earnings Per
Common Share Assuming Full Dilution".
Additional shares to be added
to common shares outstanding = 101,321 - [(101,321 * $14.125)/$17.75]
= 101,321 - 80,629
= 20,692 shares
Fully Diluted Earnings Per Share = $369,023 (net income) / 1,002,964 + 20,692
= $369,023 / 1,023,656
= $.36 per share
The dilution in earnings per share from all potential dilution is less than 3%
[$.37 per share assuming no dilution compared to $.36 per share assuming full
dilution]. Therefore, the effects of dilution are considered not material and
only a single earnings per share is presented in the income statement -
"Earnings Per Common Share".