Earnings Per Share

9 Months Ended

Sep. 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. All share and per share information has been restated to reflect the retroactive effect of the 50% stock dividend declared on August 8, 2017.



(in thousands)	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2017	2016	2017	2016
Weighted average shares outstanding	6,239	5,967	6,239	5,685
Less: Unvested restricted shares	(28)	(21)	(28)	(21)
Basic EPS weighted average shares outstanding	6,211	5,946	6,211	5,664


Basic EPS weighted average shares outstanding	6,211	5,946	6,211	5,664
Add: Dilutive effect of stock options	52	14	56	14
Diluted EPS weighted average shares outstanding	6,263	5,960	6,267	5,678

As of September 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 $30.52 per share on September 30, 2017.

As of September 30, 2016, there were 16,500 anti-dilutive options based on Norwood's closing price of $19.38 per share, after adjusting for the 50% stock dividend declared on August 8, 2017.