Income Per Common Share

9 Months Ended

Sep. 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 September 30:

	2018		2017
Net income	$	1,778,153	$	1,440,653
Weighted average shares outstanding		5,506,649		5,475,504
Effect of dilutive shares		82,900		112,906
Weighted average shares outstanding - diluted		5,589,549		5,588,410
Earnings per share - basic	$	0.32	$	0.26
Earnings per share - diluted	$	0.32	$	0.26

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

	2018		2017
Net income	$	5,116,740	$	4,053,126
Weighted average shares outstanding		5,496,346		5,459,006
Effect of dilutive shares		83,643		109,793
Weighted average shares outstanding - diluted		5,579,989		5,568,799
Earnings per share - basic	$	0.93	$	0.74
Earnings per share - diluted	$	0.92	$	0.73