Basic earnings per common share are computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share are computed by dividing net income by the effect of the issuance of potential common shares that are dilutive added to the weighted-average number of shares of common stock outstanding. Anti-dilutive potential common shares (options) are excluded from the diluted earnings per share computation and totaled 100,459 and 101,680 for the three-month and nine-month periods ended September 30, 2016, respectively, and totaled 102,297 for the three and nine months ended September 30, 2015.

 

The reconciliation of the components of the basic and diluted earnings per share is as follows.