Income Per Common Share

6 Months Ended

Jun. 30, 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 paid on 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 June 30:

	2018		2017
Net income	$	1,726,357	$	1,386,385
Weighted average shares outstanding		5,492,896		5,464,697
Effect of dilutive shares		93,689		123,990
Weighted average shares outstanding - diluted		5,586,585		5,588,687
Earnings per share - basic	$	0.31	$	0.25
Earnings per share - diluted	$	0.31	$	0.25

 The following table is a summary of the reconciliation of average shares outstanding for the six months ended June 30:

	2018		2017
Net income	$	3,338,587	$	2,612,473
Weighted average shares outstanding		5,339,187		5,461,603
Effect of dilutive shares		94,173		122,770
Weighted average shares outstanding - diluted		5,433,360		5,584,373
Earnings per share - basic	$	0.63	$	0.48
Earnings per share - diluted	$	0.61	$	0.47