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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands, except per share data)


Net income	$	2,574	$	1,813	$	4,464	$	3,623

Shares:
Basic: Weighted average common shares outstanding		7,413		7,408		7,449		7,404
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		345		178		325		100
Diluted: Weighted average common and common equivalent shares outstanding		7,758		7,586		7,774		7,504

Net income per common share:
Basic	$	0.35	$	0.24	$	0.60	$	0.49
Diluted	$	0.33	$	0.24	$	0.57	$	0.48

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, 2018 and 2017, there were 147 thousand and 382 thousand, 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, 2018 and 2017, there were 149 thousand and 404 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.