Note 3 - Earnings Per Share

9 Months Ended

Sep. 30, 2016

NOTE 3 - EARNINGS PER SHARE

The Company provides dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the average shares outstanding. Diluted earnings per share adds the dilutive effects of stock options to average shares outstanding.

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Weighted-average common shares outstanding		2,633,752			2,253,584			2,445,821			2,248,468

Average treasury stock shares		(386,165	)		(189,530	)		(386,165	)		(189,530	)

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share		2,247,587			2,064,054			2,059,656			2,058,938

Additional common stock equivalents (stock options) used to calculate diluted earnings per share		8,643			8,585			8,876			9,254

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share		2,256,230			2,072,639			2,068,532			2,068,192

Options to purchase 31,949 shares of common stock, at prices ranging from $17.55 to $40.24, were outstanding during the three and nine months ended September 30, 2016. Of those options, 24,700 were considered dilutive for the three and nine month periods based on the market price exceeding the strike price.

Options to purchase 41,787 shares of common stock, at prices ranging from $17.55 to $37.48, were outstanding during the three and nine months ended September 30, 2015. Of those options, 27,000 were considered dilutive for the three month period based on the market price exceeding the strike price. For the nine months ended September 30, 2015, 27,250 options were considered dilutive.