Earnings Per Share

12 Months Ended

Dec. 31, 2017

Note 19 – Earnings Per Share

The weighted average common shares outstanding are as follows:



	Year Ended December 31,
	2017	2016	2015

Weighted average common shares outstanding	12,285,566	12,262,275	12,175,955
Dilutive effect of employee stock options and nonvested share awards	-	-	41,800
Weighted average diluted common shares outstanding	12,285,566	12,262,275	12,217,755

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. The Company’s participating securities are its grants of restricted stock which contain non-forfeitable rights to dividends. The Company computes basic earnings per share by dividing net income allocated to common shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share is calculated to give effect to all potentially dilutive common shares that were outstanding during the year. Weighted average diluted common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and the assumed vesting of nonvested share awards. For the years ended December 31, 2017, 2016 and 2015, 443,047, 545,541 and 475,847 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive.