Earnings Per Share

6 Months Ended

Jun. 30, 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		Six Months Ended
	June 30,		June 30,
	2017	2016	2017	2016
Weighted average shares outstanding	4,160	3,691	4,161	3,696
Less: Unvested restricted shares	19	14	19	14
Basic EPS weighted average shares outstanding	4,141	3,677	4,142	3,682


Basic EPS weighted average shares outstanding	4,141	3,677	4,142	3,682
Add: Dilutive effect of stock options	33	6	34	6
Diluted EPS weighted average shares outstanding	4,174	3,683	4,176	3,688

As of June 30, 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 $42.25 per share on June 30, 2017.

At June 30, 2016, there were 58,300 anti-dilutive options based on Norwood's closing price of $28.00 per share.