5.	Common Stock and Earnings Per Share

Net income of $12,974, $11,846 and $12,489 for the years ended December 31, 2017, 2016 and 2015 respectively, is used to calculate both basic and diluted earnings per share. Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding plus potentially dilutive shares. The dilutive effect of employee stock-based compensation is included in the computation of diluted net income per share. The dilutive effect of stock-based compensation is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation. The following table summarizes the shares used in computing basic and diluted net income per share:

	2017		2016		2015
Weighted average common shares, basic		12,849,123		12,845,955		12,831,687
Effect of dilutive securities:
Employee stock-based compensation		48		18		-
Weighted average common shares, diluted		12,849,171		12,845,973		12,831,687

Under the employee stock purchase plan, all full-time employees who have been employed at least ninety consecutive days may purchase shares of the Company's common stock limited to 10% of gross compensation. The purchase price is 95% of the fair market value (as defined). Shares issued during 2017, 2016 and 2015 were 4,770, 5,115 and 7,417, respectively. As of December 31, 2017, 70,826 authorized shares remain unissued under the plan.

The Company has a Dividend Reinvestment and Direct Stock Purchase and Sale Plan ("the Plan"), which is available to both current shareholders and the general public. On October 3, 2016, the Company filed a Registration Statement on Form S-3 with the Securities and Exchange Commission (SEC) to authorize an additional 331,000 shares and rollover the unissued 170,240 shares authorized under the 2013 Form S-3, for issuance under the new Prospectus for the Plan. In addition to providing more shares for the Plan, the new Prospectus identified a change in the Company's stock transfer agent. Under the optional dividend reinvestment portion of the Plan, holders of the Company's common stock may purchase additional shares instead of receiving cash dividends. The purchase price is 95% of the fair market value (as defined). Under the direct stock purchase portion of the Plan, purchases were made weekly at 100% of the stock's fair market value through October 19, 2016. Beginning in November 2016, purchases are made monthly at 100% of the stock's fair market value, as defined in the new Prospectus. Other provisions of the Plan were left substantially unchanged. The Registration Statement was declared effective by the SEC on November 16, 2016. Shares issued during 2017, 2016 and 2015 under both Prospectuses were 51,401, 80,343 and 95,451, respectively. As of December 31, 2017, 441,238 authorized shares remain unissued under the plan.

On March 11, 2013, the Board of Directors, or the Board, authorized a share repurchase program granting the Company authority to repurchase up to 1,200,000 shares of the Company's common stock from time to time. The stock repurchase program has no specific end date and the Company may repurchase shares in the open market or through privately negotiated transactions. The Company may suspend or discontinue the repurchase program at any time. During 2017, 2016 and 2015, the Company repurchased and retired 37,229, 46,771 and 121,012 shares, respectively. As of December 31, 2017, 618,004 shares remain available for repurchase.