Earnings Per Common Share

The following shows the weighted average number of shares used in computing earnings per common share and the effect on weighted average number of shares of potentially dilutive common stock. Potentially dilutive common stock had no effect on income available to common shareholders. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period including voting rights and sharing in nonforfeitable dividends. The following table presents basic and diluted earnings per share for the three and nine month periods ended September 30, 2017 and 2016.



	Three Months Ended September 30,
	2017			2016
	Shares	Per Share Amount		Shares	Per Share Amount
Basic earnings per share	8,644,310	$	0.55	8,608,323	$	0.46
Effect of dilutive securities - stock options	18,936	—		10,012	—
Diluted earnings per share	8,663,246	$	0.55	8,618,335	$	0.46



	Nine Months Ended September 30,
	2017			2016
	Shares	Per Share Amount		Shares	Per Share Amount
Basic earnings per share	8,639,433	$	1.52	8,610,100	$	1.41
Effect of dilutive securities - stock options	18,458	—		8,286	—
Diluted earnings per share	8,657,891	$	1.52	8,618,386	$	1.41

Outstanding stock options on common stock that were not included in computing diluted earnings per share for the nine month periods ended September 30, 2017 and 2016 because their effects were anti-dilutive, averaged 440 and 14,205 shares, respectively.