Note

. Earnings per Share

For FNCB, the numerator of both the basic and diluted earnings per share of common stock is net income available to common shareholders. The weighted average number of common shares outstanding used in the denominator for basic earnings per common share is increased to determine the denominator used for diluted earnings per common share by the effect of potentially dilutive common share equivalents utilizing the treasury stock method. Common share equivalents are outstanding stock options to purchase FNCB’s shares of common stock and unvested restricted stock.

The following table presents the calculation of both basic and diluted earnings per share of common stock for the

three

months ended

March

31,

2019

and

2018:

	Three Months Ended March 31,
(in thousands, except share data)	2019		2018
Net income	$	2,635	$	2,019

Basic weighted-average number of common shares outstanding		18,720,502		16,763,401
Plus: Common share equivalents		13,150		25,935
Diluted weighted-average number of common shares outstanding		18,733,652		16,789,336

Income per common share:
Basic	$	0.14	$	0.12
Diluted	$	0.14	$	0.12

For the

three

months ended

March 31, 2019

and

2018,

common stock equivalents reflected in the table above were related entirely to the incremental shares of unvested restricted stock. As of March

31,

2019,

there were

other outstanding stock options. Stock options of

19,200

for the

three

months ended

March 31, 2018

were excluded from common stock equivalents. The exercise prices of stock options exceeded the average market price of FNCB’s common shares at

March 31, 2018;

therefore, inclusion of these common stock equivalents would be anti-dilutive to the diluted earnings per common share calculation.