EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

EARNINGS PER SHARE

EARNINGS PER SHARE

5.EARNINGS PER SHARE

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock based compensation agreements.

The factors used in the earnings per share computation follow:

	Six Months Ended
	June 30,
	2016		2015
	(in thousands)
Basic Earnings Per Share
Net Income	$	3,919	$	3,637
Weighted average common shares outstanding		2,977		2,707
Basic earnings per share	$	1.31	$	1.33
Diluted Earnings Per Share
Net Income	$	3,919	$	3,637
Weighted average common shares outstanding		2,977		2,707
Weighted average common and dilutive potential common shares outstanding		2,977		2,707
Diluted earnings per share	$	1.31	$	1.33

	Three Months Ended
	June 30,
	2016		2015
	(in thousands)
Basic Earnings Per Share
Net Income	$	2,082	$	2,122
Weighted average common shares outstanding		2,977		2,707
Basic earnings per share	$	0.70	$	0.77
Diluted Earnings Per Share
Net Income	$	2,082	$	2,122
Weighted average common shares outstanding		2,977		2,707
Weighted average common and dilutive potential common shares outstanding		2,977		2,707
Diluted earnings per share	$	0.70	$	0.77

Stock options for 1,200 shares of common stock for the six and three months ended June 30, 2016 and 2,400 shares of common stock for the six and three months ended June 30, 2015 were excluded from diluted earnings per share because their impact was antidilutive.