Earnings Per Share

Basic earnings per share (EPS), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, stock appreciation rights settled in stock or restricted stock awards, result in the issuance of common stock which shares in the earnings of the Company. A reconciliation of the numerators and denominators of the basic and diluted EPS computations is as follows:



Basic Earnings Per Share	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands, except share and per share amounts)	2017		2016		2017		2016
Net Income	$	4,494	$	3,114	$	13,691	$	12,575
Less: Preferred stock dividends and accretion	—		—		—		—
Net income available to common shareholders	$	4,494	$	3,114	$	13,691	$	12,575
Weighted average shares outstanding	12,208,313		10,984,141		12,183,363		10,969,633
Basic earnings per share	$	0.37	$	0.28	$	1.12	$	1.15



Diluted Earnings Per Share	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands, except share and per share amounts)	2017		2016		2017		2016
Net income available to common shareholders	$	4,494	$	3,114	$	13,691	$	12,575
Weighted average shares outstanding	12,208,313		10,984,141		12,183,363		10,969,633
Effect of dilutive stock options	116,941		108,533		132,487		98,412
Weighted average shares of common stock and common stock equivalents	12,325,254		11,092,674		12,315,850		11,068,045
Diluted earnings per share	$	0.36	$	0.28	$	1.11	$	1.14

No outstanding options or restricted stock awards were anti-dilutive for the nine months ended September 30, 2017. Outstanding options and restricted stock of 54,650 were not factored into the calculation of dilutive stock options for the nine months ended September 30, 2016, because they were anti-dilutive. During the three-month period ended September 30, 2017 no options or restricted stock awards were anti-dilutive. During the three-month period ended September 30, 2016, 45,800 options or restricted stock awards were not factored into the calculation because they were anti-dilutive.