EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2018

EARNINGS PER SHARE

EARNINGS PER SHARE

3.EARNINGS PER SHARE

Diluted earnings per share, which reflects the potential dilution that could occur if stock awards were fully vested and resulted in the issuance of common stock that then shared in our earnings, is computed by dividing net income by the weighted average number of common shares outstanding and common stock equivalents, after giving effect for dilutive shares issued.

The following shows the computation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017 (dollars in thousands, except per share data):

	Three Months Ended March 31,
	2018		2017
(Numerator):
Net income	$	1,537	$	1,726
(Denominator):
Weighted average shares outstanding		6,304,203		6,270,034
Effect of dilutive stock options, and vesting of restricted stock awards		26,007		10,343
Diluted weighted average shares outstanding		6,330,210		6,280,377
Income per common share:
Basic	$	0.24	$	0.28
Diluted	$	0.24	$	0.28