Note 12 – Basic and Diluted Earnings per Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period, as adjusted for stock dividends and splits. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017

	(Dollars In Thousands, Except Share and Per Share Data)
Net income	$	2,510	$	2,083	$	4,887	$	3,985

Weighted average shares outstanding		7,474,022		7,447,830		7,472,111		7,446,894
Dilutive effect of potential common shares, stock options		65,098		57,213		65,065		57,175
Diluted weighted average common shares outstanding		7,539,120		7,505,043		7,537,176		7,504,069

Basic earnings per share	$	0.34	$	0.28	$	0.65	$	0.54
Diluted earnings per share	$	0.33	$	0.28	$	0.65	$	0.53

There were no stock options not considered in computing diluted earnings per common share for the three and six months ended June 30, 2018. Stock options of 4,227 were not considered in computing diluted earnings per common share for the three and six months ended June 30, 2017.