Note 4 – Per Share Data

Basic and diluted net income per common share is computed based on the weighted average number of shares outstanding during each period after retroactively adjusting for stock dividends. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income of the Company. The Company had no stock options outstanding at June 30, 2018 but there were 13,116 shares of common stock underlying outstanding stock options at December 31, 2017. All of these options were dilutive at December 31, 2017 because the strike price was lower than the market price.

Basic and diluted net income per common share have been computed based upon net income available to common shareholders as presented in the accompanying consolidated statements of income divided by the weighted average number of common shares outstanding or assumed to be outstanding.

The computation of basic and diluted earnings per share is summarized below:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017

Weighted average number of common shares outstanding		7,107,245		7,141,240		7,109,782		7,163,493

Effect of dilutive stock options		—		332		—		493

Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share		7,107,245		7,141,572		7,109,782		7,163,986