NOTE 11 — 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 Corporation. Potential common shares that may be issued by the Corporation relate solely to outstanding stock options and are determined using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share.


	Three Months Ended
	June 30,
(In thousands, except earnings per share)	2019		2018
Net income	$	2,530	$	2,476
Weighted-average common shares outstanding		5,777		5,732
Basic earnings per share	$	0.44	$	0.43

Weighted-average common shares outstanding		5,777		5,732
Common stock equivalents due to effect of stock options		—		—
Total weighted-average common shares and equivalents		5,777		5,732
Diluted earnings per share	$	0.44	$	0.43


	Six Months Ended
	June 30,
(In thousands, except earnings per share)	2019		2018
Net income	$	4,773	$	4,253
Weighted-average common shares outstanding		5,771		5,726
Basic earnings per share	$	0.83	$	0.74

Weighted-average common shares outstanding		5,771		5,726
Common stock equivalents due to effect of stock options		—		—
Total weighted-average common shares and equivalents		5,771		5,726
Diluted earnings per share	$	0.83	$	0.74