. Basic and diluted earnings per common share:

Basic earnings per common share has been calculated by dividing net income for the period by the weighted average number of common shares outstanding during each period. Diluted earnings per share has been calculated by dividing net income for the period by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of option exercises.

The

following table is a summary of the basic and diluted earnings per common share:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016

Numerator for basic and diluted earnings per common share:
Net income for the period	$	5,241,484	$	4,070,786	$	7,687,975	$	8,509,024

Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		10,528,219		10,541,659		10,501,407		10,607,843
Effect of outstanding stock options		264,812		192,201		284,278		189,615
Diluted weighted average number of shares outstanding		10,793,031		10,733,860		10,785,685		10,797,458

Basic earnings per common share	$	0.50	$	0.39	$	0.73	$	0.80

Diluted earnings per common share	$	0.49	$	0.38	$	0.71	$	0.79

For

the

three

months ended

June 30, 2017,

outstanding options to purchase

18,500

common shares were

not

included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares (

three

months ended

June 30, 2016 –

76,800

For the

six

months ended

June 30, 2017,

outstanding options to purchase

23,500

common shares were

not

included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares

(

six

months ended

June 30, 2016 –

126,800

During

the

three

and

six

months ended

June 30, 2017,

common shares were repurchased and cancelled under the terms of our stock repurchase program announced in

March 2017.

During the

three

and

six

months ended

June 30, 2016,

209,698

and

308,416

common shares were repurchased and cancelled under the terms of our stock repurchase program announced in

February

2016.

The computation of earnings per share and diluted earnings per share for the

three

and

six

months ended

June 30,

201

and

2016

include reductions in the number of shares outstanding due to these repurchases.