NOTE 8 - 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, the potentially dilutive effect of employee stock options and restricted stock 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,
	2019		2018		2019		2018
	(in thousands)				(in thousands)

Weighted average common shares outstanding during the period for Basic computation		9,283		9,244		9,272		9,235
Dilutive effect of employee stock options and awards		46		55		50		55

Weighted average common shares outstanding during the period for Diluted computation		9,329		9,299		9,322		9,290

For both the three and nine months ended September 30, 2019, 5,000 shares of restricted stock awards were excluded from the calculations of diluted net income per share. For the three and nine months ended September 30, 2018, no shares of restricted stock awards were excluded from the calculations of diluted net income per share. Due to unrecognized compensation costs, the hypothetical repurchase of shares exceeded 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, 2019 and September 30, 2018, no shares of stock options were excluded from the calculations of diluted net income per share, as the calculated proceeds from the options’ exercise were lower than the average market price of the Company’s common stock during the period.

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, 2019, 8,403,243 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding. As of September 30, 2018, 8,364,231 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding. The par value for both classes is $1.00 per share. During the three months ended September 30, 2019 and September 30, 2018, the Company issued 5,929 and 4,493 shares of Class A Stock, respectively. For the nine months ended September 30, 2019 and September 30, 2018, the Company issued 34,215 and 30,777 shares of Class A Stock, respectively.

Equity per common share was $16.92 and $16.53 at September 30, 2019 and December 31, 2018, respectively. These amounts were computed by dividing common stockholders' equity by the number of shares of common stock outstanding on September 30, 2019 and December 31, 2018, respectively.