Information regarding the calculation of basic and diluted net income per common share for the three months ended December 31, 2016 and 2015 is as follows (dollars in thousands, except per share amounts):



	Three Months Ended December 31,
	2016		2015
Basic net income per common share computation
Numerator – net income	$	3,147	$	2,528

Denominator – weighted average common shares outstanding	6,862,749		6,869,726

Basic net income per common share	$	0.46	$	0.37

Diluted net income per common share computation
Numerator – net income	$	3,147	$	2,528

Denominator – weighted average common shares outstanding	6,862,749		6,869,726
Effect of dilutive stock options (1)	139,493		52,985
Effect of dilutive stock warrant (2)	233,273		161,153
Weighted average common shares outstanding - assuming dilution	7,235,515		7,083,864

Diluted net income per common share	$	0.43	$	0.36

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(1) For the three months ended December 31, 2016 all outstanding options were included in the computation of diluted net income per share. For the three months ended December 31, 2015, average options to purchase 154,000 of common stock were outstanding but not included in the computation of diluted net income per common share because their effect would have been anti-dilutive.

(2) Represents a warrant to purchase 370,899 shares of the Company's common stock at an exercise price of $6.73 per share (subject to anti-dilution adjustments) at any time through December 23, 2018 (the "Warrant"). The Warrant was granted on December 23, 2008 to the U.S. Treasury Department ("Treasury") as part of the Company's participation in the Treasury's Troubled Asset Relief Program ("TARP"). On June 12, 2013, the Treasury sold the Warrant to private investors. On January 31, 2017, the Warrant was exercised and 370,899 shares of the Company's common stock were issued in exchange for $2.50 million.