Net Income per Common Share

12 Months Ended

Dec. 31, 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:



	December 31,
	2015		2014		2013
Net income	$	12,050,000	$	9,634,000	$	6,866,000

Weighted average common shares outstanding — basic	7,583,000		7,508,000		7,220,000
Effect of dilutive securities	40,000		45,000		215,000
Weighted average common and potentially issuable common shares outstanding — diluted	7,623,000		7,553,000		7,435,000

Basic net income per common share	$	1.59	$	1.28	$	0.95
Diluted net income per common share	$	1.58	$	1.28	$	0.92

At December 31, 2015, there were no outstanding stock options. At December 31, 2014 and 2013, all unexercised stock options were included in diluted earnings per share.