Earnings Per Share

6 Months Ended

Jun. 30, 2017

NOTE 5 - EARNINGS PER SHARE (“EPS”)

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. At June 30, 2017 and 2016, there were 0 and 21,111 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.

Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
(dollars in thousands)	2017	2016	2017	2016
Net Income	$ 2,543	$ 1,738	$ 4,885	$ 3,346

Average number of common shares outstanding	4,632,911	4,590,444	4,630,647	4,592,563
Dilutive effect of common stock equivalents	2,572	27,350	3,073	28,636
Average number of shares used to calculate diluted EPS	4,635,483	4,617,794	4,633,720	4,621,199

Earnings Per Common Share
Basic	$ 0.55	$ 0.38	$ 1.05	$ 0.73
Diluted	0.55	0.38	1.05	0.72