Net Income per Common Share

9 Months Ended

Sep. 30, 2015

Net income per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed similarly but includes the effect of the assumed exercise of dilutive stock options and restricted stock under the treasury stock method.

The computation of basic and diluted net income per common share is as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Net income	$	2,484,000	$	2,428,000	$	9,719,000	$	7,068,000

Weighted average common shares outstanding — basic	7,597,000		7,540,000		7,578,000		7,492,000
Effect of dilutive securities	28,000		36,000		45,000		50,000
Weighted average common and potentially issuable common shares outstanding — diluted	7,625,000		7,576,000		7,623,000		7,542,000

Basic net income per common share	$	0.33	$	0.32	$	1.28	$	0.94
Diluted net income per common share	$	0.33	$	0.32	$	1.27	$	0.94

There were no unexercised stock options as of September 30, 2015, and all unexercised stock options were included in diluted earnings per share for the three and nine months ended September 30, 2014.