Earnings per share

6 Months Ended

Jun. 30, 2017

Earnings per share [Abstract]

Earnings per share

4. Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(In thousands, except per share data)
Net income	$	867	$	753	$	1,810	$	1,378
Shares:
Basic:  Weighted average common shares outstanding		7,408		7,689		7,402		7,761
Add:  Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		106		54		67		52
Diluted:  Weighted average common and common equivalent shares outstanding		7,514		7,743		7,469		7,813
Net income per common share:
Basic	$	0.12	$	0.10	$	0.24	$	0.18
Diluted	$	0.12	$	0.10	$	0.24	$	0.18

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period.  These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive.  For the three months ended June 30, 2017 and 2016, there were 407,000 and 827,000, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.  For the six months ended June 30, 2017 and 2016, there were 732,000 and 827,000, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.