4. Earnings Per Common Share

Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. Due to the net loss as of March 31, 2016, all options to purchase common shares were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Options to purchase 198,888 common shares, at exercise prices ranging from $2.98 to $4.70, were outstanding as of March 31, 2015, but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share.


	Three months ended March 31,
	2016			2015
	(In thousands, except per share data)
Numerator:
Net income (loss)	$	(1,267	)	$	1,369
Preferred stock dividends		15			53
Net income (loss) available to common shareholders	$	(1,282	)	$	1,316
Denominator:
Weighted average common shares outstanding (basic)		18,884			18,851
Effect of stock options		—			58
Weighted average common shares outstanding (diluted)		18,884			18,909
Earnings (loss) per common share:
Basic	$	(0.07	)	$	0.07
Diluted		(0.07	)		0.07