Earnings Per Share

3 Months Ended

Mar. 31, 2017

EARNINGS PER SHARE

Basic earnings per share are calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares (unvested restricted stock grants and stock options) had been issued, as well as any adjustment to income that would result from the assumed issuance of potential common shares that may be issued by us. Potential common shares related to stock options are determined using the treasury stock method.



	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
(In thousands, except share and per share data)	Income (Numerator)		Shares (Denominator)		Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Shares Outstanding (weighted average)			4,685,553						4,578,598
Shares held by Rabbi Trust			96,736						—
Shares liability under deferred compensation agreement			(96,736	)					—
Basic earnings per share:
Net earnings applicable to common stockholders	$	2,011	4,685,553		$	0.43	$	1,574	4,578,598	$	0.34
Effect of dilutive securities:
Unvested stock awards	—		41,780				—		27,828
Diluted earnings per share:
Net income applicable to common stockholders and assumed conversions	$	2,011	4,727,333		$	0.43	$	1,574	4,606,426	$	0.34

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There were 46,753 and 57,038 shares of unvested restricted stock awards and options outstanding during the three months ended March 31, 2017 and 2016, respectively, which were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive.