EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of shares outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors. There were no anti-dilutive restricted shares outstanding for the three months ended September 30, 2018 and 2017. There were approximately 3,251 and 8,800 anti-dilutive restricted shares outstanding for the nine months ended September 30, 2018 and 2017, respectively.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net income	$	5,368	$	4,132	$	21,338	$	17,092

Weighted average shares outstanding - basic	8,402,697		8,171,809		8,359,088		8,136,350
Dilutive potential shares from unvested restricted shares	195,533		248,940		202,830		214,576
Weighted average shares outstanding - diluted	8,598,230		8,420,749		8,561,918		8,350,926

Earnings per share:
Basic	$	0.64	$	0.51	$	2.55	$	2.10
Diluted	$	0.62	$	0.49	$	2.49	$	2.05