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EARNINGS PER SHARE
9 Months Ended
Sep. 30, 2021
EARNINGS PER SHARE  
EARNINGS PER SHARE

NOTE 4. EARNINGS PER SHARE

Basic earnings per share is computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (shares in thousands):

Three months ended September 30, 

2021

2020

Per Share

Per Share

    

Shares

    

Amount

    

Shares

    

Amount

Basic

 

18,640

 

$

1.20

 

18,218

 

$

0.59

Effect of dilutive stock options

 

783

 

(0.05)

 

643

 

(0.02)

Diluted

 

19,423

 

$

1.15

 

18,861

 

$

0.57

Nine months ended September 30, 

2021

2020

Per Share

Per Share

    

Shares

    

Amount

    

Shares

    

Amount

Basic

 

18,573

 

$

2.62

 

18,186

 

$

0.46

Effect of dilutive stock options

 

822

 

(0.11)

 

637

 

(0.02)

Diluted

 

19,395

 

$

2.51

 

18,823

 

$

0.44

Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the market price as their effects would be anti-dilutive in the computation of diluted earnings per share. For the three months ended September 30, 2021 and 2020, options for approximately 316 thousand and 1,062 thousand shares, respectively, were excluded from the computation. For the nine months ended September 30, 2021 and 2020, options for approximately 239 thousand and 1,077 thousand shares, respectively, were excluded from the computation.