Earnings Per Share

9 Months Ended

Sep. 30, 2015

Basic earnings per share (EPS), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, stock appreciation rights settled in stock or restricted stock awards, result in the issuance of common stock which shares in the earnings of the Company. A reconciliation of the numerators and denominators of the basic and diluted EPS computations is as follows:



Basic Earnings Per Share	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands, except share and per share amounts)	2015		2014		2015		2014
Net income available to common shareholders	$	2,517	$	2,351	$	8,061	$	7,660
Weighted average shares outstanding	10,938,160		10,919,630		10,928,780		10,917,892
Basic earnings per share	$	0.23	$	0.22	$	0.74	$	0.70



Diluted Earnings Per Share	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands, except share and per share amounts)	2015		2014		2015		2014
Net income available to common shareholders	$	2,517	$	2,351	$	8,061	$	7,660
Weighted average shares outstanding	10,938,160		10,919,630		10,928,780		10,917,892
Effect of dilutive stock options	86,794		95,277		83,244		87,661
Weighted average shares of common stock and common stock equivalents	11,024,954		11,014,907		11,012,024		11,005,553
Diluted earnings per share	$	0.23	$	0.21	$	0.73	$	0.70

During the nine month periods ended September 30, 2015 and 2014, options to purchase 26,704 and 171,065 shares of common stock, respectively, were not factored into the calculation of dilutive stock options because they were anti-dilutive. During the three month periods ended September 30, 2015 and 2014, options to purchase 36,636 and 162,160 shares of common stock, were not factored into the calculation of dilutive stock options because they were anti-dilutive.