Earnings Per Share

3 Months Ended

Mar. 31, 2016

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
	March 31,
	2016	2015
Weighted average shares outstanding	3,700	3,680
Less: Unvested restricted shares	14	-
Basic EPS weighted average shares outstanding	3,686	3,680


Basic EPS weighted average shares outstanding	3,686	3,680
Add: Dilutive effect of stock options	4	6
Diluted EPS weighted average shares outstanding	3,690	3,686

Stock options with strike prices ranging from $27.55 to $29.08 which had no intrinsic value, because their effect would be anti-dilutive and therefore would not be included in the diluted EPS calculation, were 75,574 as of March 31, 2016 based upon the closing price of Norwood common stock of $27.36 per share on March 31, 2016. As of March 31, 2015 there were 49,700 stock options with strike prices ranging from $28.41 to $29.08 which were anti-dilutive based on the closing price of Norwood stock of $27.69 on March 31, 2015.