Note H - Earnings Per Share

3 Months Ended

Mar. 31, 2016

NOTE H: EARNINGS PER SHARE

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by adjusting the weighted average number of shares of common stock outstanding by common stock equivalents attributable to dilutive stock options. The computation of diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on earnings per share. The computations of basic and diluted earnings per share were as follows:

	Three Months Ended
	March 31,
	2016		2015
	(in thousands, except per share data)

Net income	$	2,935	$	5,369

Basic weighted average common shares outstanding		7,121		7,425
Dilutive effect of common stock equivalents		24		42
Diluted weighted average common shares outstanding		7,145		7,467

Basic earnings per share	$	0.41	$	0.72
Diluted earnings per share	$	0.41	$	0.72

As of March 31, 2016 and March 31, 2015, there were no options outstanding to purchase shares of common stock that had an anti-dilutive effect on the computation of diluted earnings per share.