Earnings Per Common Share

12 Months Ended

Dec. 31, 2018

(7)

Earnings Per Common Share

Basic earnings per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding during the period. Restricted stock awards and restricted stock units (collectively, nonvested shares) are not considered to be outstanding shares until the service or performance vesting period has been completed.

For purposes of calculating diluted earnings per common share, the denominator includes both the weighted-average number of shares of common stock outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include stock options and nonvested shares using the treasury stock method and shares issuable under the employee stock purchase plan (ESPP). During 2018 and 2017, there were no common stock equivalents.

Earnings per common share information is as follows (in thousands, except per share amounts) for the years ended December 31, 2018 and 2017

	2018		2017
Earnings per Common Share – Basic and Diluted
Net income for year	$	5,849	$	5,445

Weighted-average number of common shares outstanding		44,215		44,215

Basic and diluted earnings per share	$	0.13	$	0.12

At December 31, 2018 and 2017, options for 41,787 shares were outstanding that have been excluded from the calculation of diluted weighted-average number of shares outstanding, as they would be anti-dilutive, since the respective options’ strike price was greater than the market price of the respective shares.