8. EARNINGS PER SHARE

Basic earnings per share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to potentially diluted securities. The following table sets forth the computation of basic and diluted earnings per share:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Net income	$	395,474	$	18,089	$	454,601	$	3,822
Weighted average common shares outstanding:
Average number of common shares outstanding - basic		7,619,549		7,619,469		7,619,509		7,619,469
Net effect of dilutive unvested restricted stock awards included for treasury stock method		734	—			490	—
Average number of common shares outstanding - diluted		7,620,283		7,619,469		7,619,999		7,619,469
Earnings per common share
Basic	$	0.05	$	0.00	$	0.06	$	0.00
Diluted	$	0.05	$	0.00	$	0.06	$	0.00

Common stock dividends totaled $500,020 ($0.065 per share) and $495,266 ($0.065 per share) for the three months ended June 30, 2018 and 2017, respectively, and $995,286 ($0.13 per share) and $990,531 ($0.13 per share) for the six months ended June 30, 2018 and 2017, respectively. The classification of these dividends for federal income tax purposes is expected to be determined after the Company’s fiscal year ending December 31, 2018.