Net Income per Share

9 Months Ended

Sep. 30, 2016

Basic net income per common share is calculated as net income divided by the weighted average common shares outstanding during the reporting period.

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options, were issued during the reporting period utilizing the Treasury stock method.

The following is a reconciliation of the calculation of basic and diluted income per share:



	For the three months ended September 30,				For the nine months ended September 30,
(In thousands, except per share amounts)	2016		2015		2016		2015
Net income	$	3,020	$	2,551	$	10,049	$	6,918
Weighted average common shares outstanding - Basic	9,339		9,270		9,320		9,265
Plus: Potential dilutive common stock equivalents	157		119		148		112
Weighted average common shares outstanding - Diluted	9,496		9,389		9,468		9,377
Net income per common share - Basic	$	0.32	$	0.28	$	1.08	$	0.75
Net income per common share - Diluted	0.32		0.27		1.06		0.74
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive	73		96		158		145

All weighted average share and per share figures shown above have been adjusted for the 10% stock dividend paid September 30, 2016.