NOTE 8 - NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE

Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding, the potentially dilutive effect of employee stock options and restricted stock awards.

The following table summarizes the shares used in computing basic and diluted net income per share:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
	(in thousands)				(in thousands)

Weighted average common shares outstanding during the period for Basic computation		9,276		9,237		9,267		9,230
Dilutive effect of employee stock options and awards		48		56		52		57

Weighted average common shares outstanding during the period for Diluted computation		9,324		9,293		9,319		9,287

Table of Contents

For the three and six months ended June 30, 2019, 2,700 and 1,300 shares of restricted stock awards were excluded from the calculations of diluted net income per share, respectively. For the three and six months ended June 30, 2018, 5,000 shares of restricted stock awards were excluded from the calculations of diluted net income per share, respectively. Due to unrecognized compensation costs, the hypothetical repurchase of shares exceeded the number of restricted shares expected to vest during the period, creating an anti-dilutive effect. For the three and six months ended June 30, 2019 and June 30, 2018, no shares of stock options were excluded from the calculations of diluted net income per share, as the calculated proceeds from the options’ exercise were lower than the average market price of the Company’s common stock during the period.

The Company has 15,000,000 authorized shares of Class A Stock and 1,040,000 authorized shares of Class B Common Stock, or Class B Stock. As of June 30, 2019, 8,397,314 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding. As of June 30, 2018, 8,359,738 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding. The par value for both classes is $1.00 per share. During the three months ended June 30, 2019 and June 30, 2018, the Company issued 10,492 and 11,495 shares of Class A Stock, respectively. For the six months ended June 30, 2019 and June 30, 2018, the Company issued 28,286 and 26,284 shares of Class A Stock, respectively.

Equity per common share was $16.67 and $16.53 at June 30, 2019 and December 31, 2018, respectively. These amounts were computed by dividing common stockholders' equity by the number of shares of common stock outstanding on June 30, 2019 and December 31, 2018, respectively.