Income Per Common Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Income Per Common Share

Note 5: Income Per Common Share

Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and potential common shares outstanding. Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock.

The following table is a summary of the reconciliation of average shares outstanding for the three months ended March 31:

	2017		2016
Numerator:
Net income	$	1,226,088	$	1,195,736
Denominator:
Weighted average shares outstanding		4,962,250		4,917,334
Effect of dilutive shares		110,851		150,229
Weighted average shares outstanding - diluted		5,073,101		5,067,563
Earnings per share - basic	$	0.25	$	0.24
Earnings per share - diluted	$	0.24	$	0.24