2.	Common Stock and Earnings Per Share

Net income of $3,931 and $3,571 for the three months ended September 30, 2017 and 2016, respectively, and $9,447 and $8,904 for the nine months ended September 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 September 30				Nine Months Ended September 30
	2017		2016		2017		2016
Weighted average common shares, basic		12,847,135		12,868,333		12,845,388		12,846,521
Effect of dilutive securities:
Employee stock-based compensation		121		-		74		-
Weighted average common shares, diluted		12,847,256		12,868,333		12,845,462		12,846,521

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 months ended September 30, 2017 and 2016, the Company repurchased 0 and 16,849 shares, respectively. During the nine months ended September 30, 2017 and 2016, the Company repurchased 37,229 and 16,849 shares, respectively. As of September 30, 2017, 618,004 shares remain authorized for repurchase.