Earnings Per Share

6 Months Ended

Jun. 30, 2014

2. Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share.

(in thousands)



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2014	2013	2014	2013
Basic EPS weighted average shares outstanding	3,643	3,621	3,643	3,624
Dilutive effect of stock options	10	13	10	13
Diluted EPS weighted average shares outstanding	3,653	3,634	3,653	3,637

Stock options which had no intrinsic value, because their effect would be anti-dilutive and therefore would not be included in the diluted EPS calculation were 20,700 and 0 as of June 30, 2014 and 2013, respectively, based upon the closing prices of Norwood common stock of $28.50 and $29.00 per share on June 30, 2014 and 2013, respectively.

- Definition

The entire disclosure for earnings per share.

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