NOTE 5 - NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE

Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding and the potentially dilutive effect of employee stock options and awards.

The following table summarizes the shares used in computing basic and diluted net income per share:

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,

	2017	2016	2017	2016
	(in thousands)		(in thousands)

Weighted average common shares outstanding during the period for Basic computation	9,191	9,112	9,164	9,090
Dilutive effect of employee stock options and awards	95	65	98	64

Weighted average common shares outstanding during the period for Diluted computation	9,286	9,177	9,262	9,154

For the three months ended September 30, 2017, no shares of restricted stock awards were excluded from the calculations of diluted net income per share. For the nine months ended September 30, 2017, 4,240 shares of restricted stock awards were excluded from the calculations of diluted net income per share. For the three months ended September 30, 2016, no shares of restricted stock awards were excluded from the calculations of diluted net income per share. For the nine months ended September 30, 2016, 3,780 shares of restricted stock awards were excluded from the calculations of diluted net income per share. Due to unrecognized compensation costs during the noted periods, the hypothetical repurchase of shares exceeds the number of restricted shares expected to vest during the period, creating an anti-dilutive effect. For the three and nine months ended September 30, 2017 and September 30, 2016, no shares of stock options were excluded from the calculations of diluted net income per share.

The Company has 15,000,000 authorized shares of Class A Stock and 1,040,000 authorized shares of Class B common stock, or Class B Stock. As of September 30, 2017, 8,311,700 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding compared to 8,232,645 shares of Class A Stock and 881,452 shares of Class B Stock issued and outstanding as of September 30, 2016. The par value for both classes is $1.00 per share. For the three months ended September 30, 2017 and September 30, 2016, the Company issued 5,027 and 7,352 shares of Class A Stock, respectively. For the nine months ended September 30, 2017 and September 30, 2016, the Company issued 65,067 and 56,432 shares of Class A Stock, respectively.

Equity per common share was $15.78 and $15.28 at September 30, 2017 and December 31, 2016, respectively. These amounts were computed by dividing common stockholders' equity by the number of weighted average shares of common stock outstanding on September 30, 2017 and December 31, 2016, respectively.