EARNINGS PER SHARE (“EPS”)

9 Months Ended

Sep. 30, 2020

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. There were no outstanding stock options at September 30, 2020 for the Company to apply the treasury method to account for potential common shares that may have been issued.

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


(dollars in thousands, except per share amounts)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019

Net Income	$	3,799	$	3,693	$	9,997	$	11,197

Average number of common shares outstanding	5,895,074		5,560,878		5,892,107		5,559,622
Dilutive effect of common stock equivalents	—		—		—		—
Average number of shares used to calculate diluted EPS	5,895,074		5,560,878		5,892,107		5,559,622

Earnings Per Common Share
Basic	$	0.64	$	0.66	$	1.70	$	2.01
Diluted	$	0.64	$	0.66	$	1.70	$	2.01