Earnings Per Share

12 Months Ended

Dec. 31, 2016

NOTE 3 - EARNINGS PER SHARE

Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. As of December 31, 2016, 2015 and 2014, there were 15,081, 21,211 and 87,435 options, respectively, which were excluded from the calculation as their effect would be anti-dilutive, because the exercise price of the options were greater than the average market price of the common shares. The Company has not granted any stock options since 2007 and all options outstanding at December 31, 2016 were anti-dilutive. Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows:


	Years Ended
	December 31,
(dollars in thousands)	2016	2015	2014
Net Income	$ 7,331	$ 6,343	$ 6,490
Less: dividends paid and accrued on preferred stock	-	(23)	(200)
Net income available to common shareholders	$ 7,331	$ 6,320	$ 6,290

Average number of common shares outstanding	4,599,502	4,676,748	4,646,424
Dilutive effect of common stock equivalents	-	-	8,703
Average number of shares used to calculate diluted EPS	4,599,502	4,676,748	4,655,127