Earnings Per Share

9 Months Ended

Sep. 30, 2016

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)	2016		2015		2016		2015
Net Income	$	3,114	$	2,517	$	12,575	$	8,061
Less: Preferred stock dividends and accretion	—		—		—		—
Net income available to common shareholders	$	3,114	$	2,517	$	12,575	$	8,061
Weighted average shares outstanding	10,984,141		10,938,160		10,969,633		10,928,780
Basic earnings per share	$	0.28	$	0.23	$	1.15	$	0.74



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)	2016		2015		2016		2015
Net income available to common shareholders	$	3,114	$	2,517	$	12,575	$	8,061
Weighted average shares outstanding	10,984,141		10,938,160		10,969,633		10,928,780
Effect of dilutive stock options	108,533		86,794		98,412		83,244
Weighted average shares of common stock and common stock equivalents	11,092,674		11,024,954		11,068,045		11,012,024
Diluted earnings per share	$	0.28	$	0.23	$	1.14	$	0.73

During the nine months month periods ended September 30, 2016 and 2015, options to purchase 54,650 and 26,704 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, 2016 and 2015, options to purchase 45,800 and 36,636 shares of common stock, respectively, were not factored into the calculation of dilutive stock options because they were anti-dilutive.