NOTE 9: EARNINGS PER SHARE

Basic earnings per share excludes dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if contracts to issue common stock were exercised or converted into common stock that would then share in earnings. The following table sets forth the Company’s unaudited earnings per share calculations for the quarters ended March 31:

	2017				2016
(dollars in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted

Net income	$	6,113	$	6,113	$	3,787	$	3,787

Basic common shares outstanding		32,805,010		32,805,010		32,006,176		32,006,176
Effect of contingent shares issuable				1,592				1,592
Effect of options and restricted stock				1,154,618				1,161,296
Diluted common shares outstanding				33,961,220				33,169,064

Earnings per share	$	0.19	$	0.18	$	0.12	$	0.11

Based on a weighted average basis, options to purchase 26,500 shares of common stock were excluded for the quarter ended March 31, 2016 because their effect would have been anti-dilutive.