4.	Common Stock and Earnings Per Share

Net income of $3,305 and $2,935 for the three months ended June 30, 2018 and 2017, respectively, and $5,899 and $5,516 for the six months ended June 30, 2018 and 2017, 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
	2018		2017		2018		2017

Weighted average common shares, basic		12,895,687		12,839,968		12,886,154		12,844,500
Effect of dilutive securities:
Employee stock-based compensation		62		80		52		81
Weighted average common shares, diluted		12,895,749		12,840,048		12,886,206		12,844,581

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. No shares were repurchased during the three or six months ended June 30, 2018. During the three and six months ended June 30, 2017, the Company repurchased 12,900 and 37,229 shares, respectively. As of June 30, 2018, 618,004 shares remain authorized for repurchase.