Net income (numerator)

$

862,000

$

1,430,000

$

3,082,000

$

3,128,000

Shares (denominator):

Basic weighted average common shares outstanding

11,075,527

11,781,071

11,103,467

11,974,336

Add: dilutive effect of common stock options

98,212

-

90,711

-

Diluted weighted average common shares outstanding

11,173,739

11,781,071

11,194,178

11,974,336

Earnings per common share:

Basic

$

0.08

$

0.12

$

0.28

$

0.26

Diluted

$

0.08

$

0.12

$

0.28

$

0.26