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. Options to purchase 147,968 common shares, at exercise prices ranging from $3.18 to $4.60, were outstanding as of September 30, 2016, but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Options to purchase 74,304 common shares, at exercise prices ranging from $3.20 to $4.70, were outstanding as of September 30, 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 September 30,					Nine months ended September 30,
	2016		2015			2016			2015
	(In thousands, except per share data)
Numerator:
Net income	$	1,065	$	1,833		$	1,160		$	4,623
Preferred stock dividends		—		(52	)		(15	)		(157	)
Net income available to common shareholders	$	1,065	$	1,781		$	1,145		$	4,466
Denominator:
Weighted average common shares outstanding (basic)		18,899		18,869			18,893			18,860
Effect of stock options		58		82			54			68
Weighted average common shares outstanding (diluted)		18,957		18,951			18,947			18,928
Earnings per common share:
Basic	$	0.06	$	0.09		$	0.06		$	0.24
Diluted		0.06		0.09			0.06			0.24