Net Income per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Income per Share

NOTE 3. Net Income per Share

Basic net income per common share is calculated as net income divided by the weighted average common shares outstanding during the reporting period.

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options, were issued during the reporting period utilizing the Treasury stock method.

The following is a reconciliation of the calculation of basic and diluted income per share:

	For the three months ended September 30,				For the nine months ended September 30,
(In thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	5,760	$	5,959	$	16,299	$	17,533
Weighted average common shares outstanding - Basic		10,630		10,863		10,768		10,836
Plus: Potential dilutive common stock equivalents		76		173		107		183
Weighted average common shares outstanding - Diluted		10,706		11,036		10,875		11,019
Net income per common share - Basic	$	0.54	$	0.55	$	1.51	$	1.62
Net income per common share - Diluted		0.54		0.54		1.50		1.59
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive		430		251		413		237