Earnings Per Share

3 Months Ended

Mar. 31, 2017

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,
	2017	2016
Weighted average shares outstanding	4,162	3,700
Less: Unvested restricted shares	(19)	(14)
Basic EPS weighted average shares outstanding	4,143	3,686


Basic EPS weighted average shares outstanding	4,143	3,686
Add: Dilutive effect of stock options	35	4
Diluted EPS weighted average shares outstanding	4,178	3,690

As of March 31, 2017, there were no stock options that would be anti-dilutive to the earnings per share calculations based upon the closing price of Norwood common stock of $41.89 per share on March 31, 2017.

At March 31, 2016, there were 75,574 anti-dilutive options based on Norwood's closing price of $27.36 per share.