8. EARNINGS PER SHARE

Net income per share of class A common stock and class B common stock is computed using the two-class method. Earnings per share under the two-class method treats unvested share-based payment awards with non-forfeitable rights to dividends as a separate class of securities. The Company’s unvested restricted stock grants are considered participating securities because the shares have the right to receive non-forfeitable dividends. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security by allocating earnings according to dividends declared and participating rights in undistributed earnings.

Basic net income per share is computed by allocating undistributed earnings to common shares and using the weighted-average number of common shares outstanding during the period.

Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, the potential common shares outstanding during the period, utilizing the two-class method for unvested restricted stock. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

The liquidation rights and the rights upon the consummation of an extraordinary transaction are the same for the holders of class A common stock and class B common stock. Other than share distributions and liquidation rights, the amount of any dividend or other distribution payable on each share of class A common stock will be equal to one-sixth (1/6

) of the amount of any such dividend or other distribution payable on each share of class B common stock. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the class A and class B common stock as if the earnings for the year had been distributed.

	For the Three Months Ended June 30, 2015						For the Three Months Ended June 30, 2014
	Class A Common Stock			Class B Common Stock			Class A Common Stock		Class B Common Stock
	(In thousands, except per share data)
Numerator for net income per share - basic:
Net income	$	2,028		$	2,036		$	2,022	$	2,029
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(14	)		(14	)		--		--
Net income attributable to common shareholders	$	2,014		$	2,022		$	2,022	$	2,029
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		20,790			3,478			20,771		3,474
Net income per share – basic	$	0.10		$	0.58		$	0.10	$	0.58
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	2,014		$	2,022		$	2,022	$	2,029
Denominator for net income per share - diluted:
Weighted average common shares outstanding - basic		20,790			3,478			20,771		3,474
Weighted average effect of dilutive securities – stock options		239			44			302		65
Denominator for diluted earnings per share – adjusted weighted average shares		21,029			3,522			21,073		3,539
Net income per share – diluted	$	0.10		$	0.57		$	0.10	$	0.57

The Company excluded 535,383 and 329,427 shares of class A common stock options for the three-month periods ended June 30, 2015 and 2014, respectively, and 56,732 and 17,802 shares of class B common stock options for the three-month periods ended June 30, 2015 and 2014, respectively, from the diluted net income per share computation because the exercise or grant price exceeded the fair market value of the common stock on such date.

	For the Six Months Ended June 30, 2015						For the Six Months Ended June 30, 2014
	Class A Common Stock			Class B Common Stock			Class A Common Stock		Class B Common Stock
	(In thousands, except per share data)
Numerator for net income per share - basic:
Net income	$	3,765		$	3,780		$	4,744	$	4,761
Allocation of distributed and undistributed income to unvested restricted stock shareholders		(27	)		(27	)		--		--
Net income attributable to common shareholders	$	3,738		$	3,753		$	4,744	$	4,761
Denominator for net income per share - basic:
Weighted average common shares outstanding - basic		20,791			3,478			20,757		3,472
Net income per share – basic	$	0.18		$	1.08		$	0.23	$	1.37
Numerator for net income per share - diluted:
Net income attributable to common shareholders for basic computation	$	3,738		$	3,753		$	4,744	$	4,761
Denominator for net income per share - diluted:
Weighted average common shares outstanding - basic		20,791			3,478			20,757		3,472
Weighted average effect of dilutive securities – stock options		240			45			341		68
Denominator for diluted earnings per share – adjusted weighted average shares		21,031			3,523			21,098		3,540
Net income per share – diluted	$	0.18		$	1.07		$	0.22	$	1.34

The Company excluded 506,565 and 292,182 shares of class A common stock options for the six-month periods ended June 30, 2015 and 2014, respectively, and 50,502 and 10,762 shares of class B common stock options for the three-month periods ended June 30, 2015 and 2014, respectively, from the diluted net income per share computation because the exercise or grant price exceeded the fair market value of the common stock on such date.