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. The Company had no options to purchase common shares excluded from the computation of diluted earnings per common share, since all option exercise prices were below the average closing price for the first quarter of 2017. 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. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share.


	Three months ended March 31,
	2017		2016
	(In thousands, except per share data)
Numerator:
Net income	$	1,348	$	(1,267	)
Preferred stock dividends		—		(15	)
Net income available to common shareholders	$	1,348	$	(1,282	)
Denominator:
Weighted average common shares outstanding (basic)		18,814		18,884
Effect of stock options		108		—
Weighted average common shares outstanding (diluted)		18,922		18,884
Earnings per common share:
Basic	$	0.07	$	(0.07	)
Diluted		0.07		(0.07	)