Calculation of Earnings Per Share

12 Months Ended

Dec. 31, 2019

Calculation of Earnings Per Share [Abstract]

Calculation of Earnings Per Share

17. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income 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 were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Restricted stock is participating, and therefore, is included in the basic EPS calculation. The following table sets forth the computation of basic and diluted earnings per share:

(Dollars in thousands, except earnings per share)	Year ended  December 31,
	2019		2018
Net income	$	5,835	$	5,904
Weighted-average common shares outstanding		5,102		4,987
Basic earnings per share	$	1.14	$	1.18
Weighted-average common shares outstanding		5,102		4,987
Common stock equivalents due to effect of stock options		19		22
Total weighted-average common shares and equivalents	$	5,121	$	5,009
Diluted earnings per share	$	1.14	$	1.18