2.	Common Stock and Earnings Per Share

Net income of $2,935 and $2,847 for the three months ended June 30, 2017 and 2016, respectively, and $5,516 and $5,333 for the six months ended June 30, 2017 and 2016 respectively, is used to calculate both basic and diluted earnings per share. Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding plus potentially dilutive shares. The dilutive effect of employee stock-based compensation is included in the computation of diluted earnings per share and is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation. The following table summarizes the shares used in computing basic and diluted earnings per share.

	Three Months Ended June 30				Six Months Ended June 30
	2017		2016		2017		2016

Weighted average common shares, basic		12,839,968		12,849,884		12,844,500		12,835,495
Effect of dilutive securities:
Employee stock-based compensation		80		-		81		-
Weighted average common shares, diluted		12,840,048		12,849,884		12,844,581		12,835,495

On March 11, 2013, the Board of Directors, or the Board, authorized a share repurchase program granting the Company authority to repurchase up to 1,200,000 shares of the Company's common stock from time to time. The stock repurchase program has no specific end date and the Company may repurchase shares in the open market or through privately negotiated transactions. The Company may suspend or discontinue the repurchase program at any time. During the three and six months ended June 30, 2017, the Company repurchased 12,900 and 37,229 shares respectively. No shares were repurchased during the three or six months ended June 30, 2016. As of June 30, 2017, 618,004 shares remain authorized for repurchase.