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, outstanding at September 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 147,968 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 September 30,				Nine months ended September 30,
	2017		2016		2017		2016
	(In thousands, except per share data)
Numerator:
Net income	$	1,551	$	1,065	$	4,288	$	1,160
Preferred stock dividends		—		—		—		(15	)
Net income available to common shareholders	$	1,551	$	1,065	$	4,288	$	1,145
Denominator:
Weighted average common shares outstanding (basic)		18,380		18,899		18,590		18,893
Effect of stock options		101		58		99		54
Weighted average common shares outstanding (diluted)		18,481		18,957		18,689		18,947
Earnings per common share:
Basic	$	0.08	$	0.06	$	0.23	$	0.06
Diluted		0.08		0.06		0.23		0.06