EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

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, 2020 and 2019 (dollars in thousands, except per share data):


	Three Months Ended March 31,
	2020		2019

(Numerator):
Net income	$	3,051	$	3,167

(Denominator):
Weighted average shares outstanding		10,717,967		10,720,127
Effect of restricted stock awards		96,824		3,794
Diluted weighted average shares outstanding		10,814,791		10,723,921
Income per common share:
Basic	$	0.28	$	0.30
Diluted	$	0.28	$	0.30