The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is not significant for these participating securities.



	Three months ended				Nine months ended
(in thousands, except per share data)	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Weighted average basic shares outstanding	6,123		6,083		6,109		6,070
Potentially dilutive common shares related to:
Stock options	53		27		55		30
Unvested restricted stock awards	15		7		15		6
Weighted average diluted shares outstanding	6,191		6,117		6,179		6,106
Net income	$	5,132	$	6,964	$	14,866	$	17,447
Basic EPS	$	0.84	$	1.14	$	2.43	$	2.87
Diluted EPS	$	0.83	$	1.14	$	2.41	$	2.86
Weighted average anti-dilutive shares not included in the calculation of diluted EPS	23		71		19		65