Basic and diluted earnings per common share:

Basic earnings per common share has been calculated on the basis of net income for the period divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options.

The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation (Dollar amounts in thousands of U.S. dollars, except per share amounts):

	Three months ended March 31,
	2019		2018
Numerator for basic and diluted earnings per common share:
Net income for the period		2,799		3,744

Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		10,634,842		10,588,718
Effect of outstanding stock options		201,055		203,895
Diluted weighted average number of shares outstanding		10,835,897		10,792,613

Basic earnings per common share		0.26		0.35

Diluted earnings per common share		0.26		0.35

For the

three

months ended

March 31, 2019,

outstanding options to purchase

121,300

common shares were

not

included in the computation of diluted income per common share because all such options’ exercise price was greater than the average market price of the common shares for the period as compared to the

three

months ended

March 31, 2018,

where

333,300

outstanding options were

not

included in the computation.

During the

three

months ended

March 31, 2019,

the Company did

not

repurchase any shares under the stock buyback program which commenced on

February 13, 2019,

and will be terminated on or before

February 13, 2020,

or under the stock buyback program commenced on

February 14 2018

and terminated on

February 13, 2019.

During the

three

months ended

March 31, 2018,

common shares were repurchased and cancelled under the terms of our stock repurchase program which commenced on

February 14, 2018,

terminated on

February 13, 2019

or under the program commenced

March 1 2017,

and terminated on

February 14 2018.