4. Earnings Per Common Share

Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. Options to purchase 140,527 common shares, at exercise prices ranging from $3.18 to $4.60, were outstanding as of June 30, 2016, but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Options to purchase 179,304 common shares, at exercise prices ranging from $3.18 to $4.70, were outstanding as of June 30, 2015, but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share.


	Three months ended June 30,					Six months ended June 30,
	2016		2015			2016			2015
	(In thousands, except per share data)
Numerator:
Net income	$	1,362	$	1,421		$	95		$	2,790
Preferred stock dividends		—		(52	)		(15	)		(105	)
Net income available to common shareholders	$	1,362	$	1,369		$	80		$	2,685
Denominator:
Weighted average common shares outstanding (basic)		18,897		18,859			18,890			18,855
Effect of stock options		51		82			53			68
Weighted average common shares outstanding (diluted)		18,948		18,941			18,943			18,923
Earnings per common share:
Basic	$	0.07	$	0.07		$	0.00		$	0.14
Diluted		0.07		0.07			0.00			0.14