Note 3 - Earnings per Share

The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company.

	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Net income applicable to common stock	$	4,846,000	$	4,691,000	$	9,251,000	$	8,938,000
Basic earnings per share computation
Weighted average common shares outstanding		3,523,135		3,541,703		3,525,788		3,544,343
Earnings per share - basic	$	1.38	$	1.32	$	2.62	$	2.52
Diluted earnings per share computation
Weighted average common shares outstanding for basic earnings per share		3,523,135		3,541,703		3,525,788		3,544,343
Add: Dilutive effects of restricted stock		1,382		1,467		695		631
Weighted average common shares outstanding for dilutive earnings per share		3,524,517		3,543,170		3,526,483		3,544,974
Earnings per share - diluted	$	1.38	$	1.32	$	2.62	$	2.52

For the three months ended June 30, 2019 and 2018, there were 5,343 and 465 shares, respectively, related to the restricted stock plan that were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had per share prices ranging from $50.65-$62.93 for the three month period ended June 30, 2019 and per share prices ranging from $46.69-$61.04 for the three month period ended June 30, 2018. For the six months ended June 30, 2019 and 2018, 5,343 and 3,349 shares, respectively, related to the restricted stock plan were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had prices ranging from $50.65-$62.93 for the six month period ended June 30, 2019 and prices ranging from $46.69-$61.04for the six month period ended June 30, 2018.