Income Per Common Share

3 Months Ended

Mar. 31, 2018

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, after giving retroactive effect to a stock dividend payable May 31, 2018. 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:

	2018		2017
Numerator:
Net income	$	1,612,230	$	1,226,088
Denominator:
Weighted average shares outstanding		5,489,087		5,458,475
Effect of dilutive shares		94,284		121,937
Weighted average shares outstanding - diluted		5,583,371		5,580,412
Earnings per share - basic	$	0.29	$	0.22
Earnings per share - diluted	$	0.29	$	0.22