3.	Earnings per Common Share

Basic earnings per common share (EPS) excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares for assumed issuance of restricted stock and shares issued under stock options.

The factors used in the Corporation’s earnings per common share computation follow:

(Dollar amounts in thousands, except for per share amounts)	For the three months ended				For the nine months ended
	September 30,				September 30,
	2018		2017		2018		2017
Earnings per common share - basic
Net income	$	1,161	$	1,707	$	3,935	$	3,704
Less: Preferred stock dividends		-		-		-		-
Net income available to common stockholders	$	1,161	$	1,707	$	3,935	$	3,704
Average common shares outstanding		2,271,139		2,204,949		2,271,139		2,174,210
Basic earnings per common share	$	0.51	$	0.77	$	1.73	$	1.70
Earnings per common share - diluted
Net income available to common stockholders	$	1,161	$	1,707	$	3,935	$	3,704
Average common shares outstanding		2,271,139		2,204,949		2,271,139		2,174,210
Add: Dilutive effects of assumed issuance of restricted stock and exercise of stock options		20,147		15,471		17,584		16,437
Average shares and dilutive potential common shares		2,291,286		2,220,420		2,288,723		2,190,647
Diluted earnings per common share	$	0.51	$	0.77	$	1.72	$	1.69
Stock options not considered in computing earnings per share because they were antidilutive		-		-		-		-