3. 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 2017 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		Six Months Ended
	June 30,		June 30,
	2018	2017	2018	2017
Weighted average shares outstanding	6,256	6,240	6,256	6,242
Less: Unvested restricted shares	31	29	31	29
Basic EPS weighted average shares outstanding	6,225	6,211	6,225	6,213


Basic EPS weighted average shares outstanding	6,225	6,211	6,225	6,213
Add: Dilutive effect of stock options	50	50	51	51
Diluted EPS weighted average shares outstanding	6,275	6,261	6,276	6,264

For the three and six month periods ending June 30, 2018, 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 $36.02 per share on June 30, 2018.

For the three and six month periods ending June 30, 2017, there were no anti-dilutive options based on Norwood's closing price of $28.17 per share, after adjusting for the 50% stock dividend declared on August 8, 2017.