4. 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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In thousands, except per share data)


Net income	$	1,210	$	867	$	1,890	$	1,810

Shares:
Basic: Weighted average common shares outstanding		7,401		7,408		7,467		7,402
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		259		106		315		67
Diluted: Weighted average common and common equivalent shares outstanding		7,660		7,514		7,782		7,469

Net income per common share:
Basic	$	0.16	$	0.12	$	0.25	$	0.24
Diluted	$	0.16	$	0.12	$	0.24	$	0.24

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 June 30, 2018 and 2017, there were 196 thousand and 407 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. For the six months ended June 30, 2018 and 2017, there were 147 thousand and 732 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.