Net Income Per Common Share – Basic and Diluted

Basic income per share is based upon the net income applicable to common shares and upon the weighted average number of common shares outstanding during the period. Diluted income per share reflects the effect of the assumed exercise of stock options only in periods in which such effect would have been dilutive. The computation of the Company’s basic and diluted earnings per share (in thousands, except per share data):



	For The Three Months Ended September 30,				For The Nine Months Ended September 30,
	2017		2016		2017			2016
Income available to common shareholders (A)	$	2,590	$	1,468	$	6,154		$	3,964

Weighted average common shares outstanding (B)	123,544		123,016		123,519			122,654
Dilutive effect of equity incentive plans	1,935		34		(488		)	1
Weighted average common shares outstanding, assuming dilution (C)	125,479		123,050		123,031			122,655

Basic earnings per common share (A)/(B)	$	0.02	$	0.01	$	0.05		$	0.03
Diluted earnings per common share (A)/(C)	$	0.02	$	0.01	$	0.05		$	0.03

Note 13 - Net Income Per Common Share – Basic and Diluted, continued

For the three and nine months ended September 30, 2017, a total of 1,415,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were greater than the market value of the common shares (out-of-the-money).

For the three and nine months ended September 30, 2016, a total of 1,008,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were out-of-the-money.

Out-of-the money options could be included in the calculation in the future if the market value of the Company’s common shares increases and is greater than their exercise price.