Income Per Common Share

6 Months Ended

Jun. 30, 2019

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 June 30:

	2019		2018
Net income	$	1,840,847	$	1,726,357
Weighted average shares outstanding		5,517,236		5,492,896
Effect of dilutive shares		70,749		93,689
Weighted average shares outstanding - diluted		5,587,985		5,586,585
Earnings per share - basic	$	0.33	$	0.31
Earnings per share - diluted	$	0.33	$	0.31

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

	2019		2018
Net income	$	3,530,111	$	3,338,587
Weighted average shares outstanding		5,515,832		5,339,187
Effect of dilutive shares		70,981		94,173
Weighted average shares outstanding - diluted		5,586,813		5,433,360
Earnings per share - basic	$	0.64	$	0.63
Earnings per share - diluted	$	0.63	$	0.61