Earnings Per Share

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and dilutive common share equivalents using the treasury stock method. Dilutive common share equivalents include common shares issuable upon exercise of outstanding stock options and restricted stock. The effect from the stock options on incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were antidilutive shares of 13,166 and 17,649 for the years ended December 31, 2017 and 2016, respectively.



(Dollars in thousands, except share amounts)	2017		2016
Basic earnings per share computation:
Net income available to common stockholders	$	4,820	$	4,777
Average common shares outstanding – basic	8,639,212		5,838,574
Basic earnings per share	$	0.56	$	0.82
Diluted earnings per share computation:
Net income available to common stockholders	$	4,820	$	4,777
Average common shares outstanding – basic	8,639,212		5,838,574
Incremental shares from assumed conversions:
Stock options	154,315		280,369
Average common shares outstanding - diluted	8,793,527		6,118,943
Diluted earnings per share	$	0.55	$	0.78