4.	Common Stock and Earnings Per Share

Net income of $3,800 and $3,931 for the three months ended September 30, 2018 and 2017, respectively, and $9,699 and $9,447 for the nine months ended September 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 September 30				Nine Months Ended September 30
	2018		2017		2018		2017

Weighted average common shares, basic		12,912,833		12,847,135		12,895,144		12,845,388
Effect of dilutive securities:
Employee stock-based compensation		196		121		120		74
Weighted average common shares, diluted		12,913,029		12,847,256		12,895,264		12,845,462

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 nine months ended September 30, 2018. During the three and nine months ended September 30, 2017, the Company repurchased 0 and 37,229 shares, respectively. As of September 30, 2018, 618,004 shares remain authorized for repurchase.