4. EARNINGS PER SHARE & SHARE REPURCHASE PLAN

The following sets forth the computation of basic and diluted earnings per share:

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Numerator for basic and diluted earnings per share - net income	$	2,862	$	2,386	$	5,797	$	5,246
Denominator for basic earnings per share - weighted average shares outstanding		3,460,360		3,425,356		3,456,467		3,420,239
Effect of dilutive securities - employee stock options		20,952		17,852		20,407		16,027
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,481,312		3,443,208		3,476,874		3,436,266
Earnings per share - basic	$	0.83	$	0.70	$	1.68	$	1.53
Earnings per share - diluted		0.82		0.69		1.67		1.53

There were 25,000 stock options that were anti-dilutive for both three- and six-month periods ended June 30, 2018 and 2017. These stock options were not included in the above calculation.

The Board of Directors has authorized the repurchase of up to 100,000 shares of its common stock in open market or privately negotiated transactions. The repurchase authorization does not bear a termination date. There were no shares repurchased during the three and six months ended June 30, 2018 and 2017. As of June 30, 2018, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000.