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Note 3 - Earnings Per Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Text Block]
NOTE 3 - EARNINGS PER SHARE

The Company provides dual presentation of Basic and Diluted earnings per share.  Basic earnings per share uses net income as reported as the numerator and the actual average shares outstanding as the denominator.  Diluted earnings per share includes any dilutive effects of options, warrants, and convertible securities.

There are no convertible securities that would affect the denominator in calculating basic and diluted earnings per share. The following tables set forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

   
For the Three
Months Ended
September 30,
   
For the Nine
Months Ended
September 30,
 
   
2012
   
2011
   
2012
   
2011
 
                         
Weighted average common shares outstanding
    2,167,711       1,894,207       2,077,027       1,847,945  
                                 
Average treasury stock shares
    (189,530 )     (189,530 )     (189,530 )     (189,530 )
                                 
Weighted average common shares and common stock equivalents used to calculate basic earnings per share
    1,978,181       1,704,677       1,887,497       1,658,415  
                                 
Additional common stock equivalents (stock options) used to calculate diluted earnings per share
    5,682       -       4,236       -  
                                 
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share
    1,983,863       1,704,677       1,891,733       1,658,415  

The average share price for the quarter ended September 30, 2012 was $22.85 while the year-to-date average price was $21.08.  Options to purchase 88,354 shares of common stock, at prices ranging from $17.55 to $40.24, were outstanding at September 30, 2012.  Of those options, 9,000 were considered dilutive based on the average market price exceeding the strike price for the nine months ended September 30, 2012.  The three month period ended with 17,536 shares considered dilutive.  In accordance with the subscription agreement entered into by an institutional investor, there was also an additional 11,332 shares, at $16 per share, considered dilutive for the three and nine-months ended September 30, 2012.  The remaining options had no dilutive effect on the earnings per share.

The average share price for the quarter ended September 30, 2011 was $17.23 while the year-to-date average price was $17.36.  The options to purchase 90,528 shares of common stock at prices ranging from $17.55 to $40.24 were outstanding during the three and nine months ended September 30, 2011 but were not included in the computation of diluted earnings per share as they were anti-dilutive due to the strike price being greater than the average market price.