Earnings per share

9 Months Ended

Sep. 30, 2017

Earnings per share [Abstract]

Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(In thousands, except per share data)
Net income	$	1,813	$	883	$	3,623	$	2,261
Shares:
Basic:  Weighted average common shares outstanding		7,408		7,498		7,404		7,673
Add:  Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		178		51		100		51
Diluted:  Weighted average common and common equivalent shares outstanding		7,586		7,549		7,504		7,724
Net income per common share:
Basic	$	0.24	$	0.12	$	0.49	$	0.29
Diluted	$	0.24	$	0.12	$	0.48	$	0.29

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period.  These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive.  For the three months ended September 30, 2017 and 2016, there were 382,000 and 833,000, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.  For the nine months ended September 30, 2017 and 2016, there were 404,000 and 833,000, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.