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 10,000 options to purchase common shares with an exercise price of $4.00 per share, were outstanding at June 30, 2017, but were excluded from the computation of diluted earnings per common share because to do so would be antidilutive. For the 2016 period, options to purchase 140,527 common shares, at exercise prices ranging from $3.18 to $4.60, were outstanding 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 June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands, except per share data)
Numerator:
Net income	$	1,389	$	1,362	$	2,737	$	95
Preferred stock dividends		—		—		—		(15	)
Net income available to common shareholders	$	1,389	$	1,362	$	2,737	$	80
Denominator:
Weighted average common shares outstanding (basic)		18,580		18,897		18,696		18,890
Effect of stock options		119		51		112		53
Weighted average common shares outstanding (diluted)		18,699		18,948		18,808		18,943
Earnings per common share:
Basic	$	0.07	$	0.07	$	0.15	$	0.00
Diluted		0.07		0.07		0.15		0.00