NOTE

- 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 Six
	Months Ended						Months Ended
	June 30,						June 30,

	2017			2016			2017			2016
Weighted-average common shares outstanding		3,386,616			2,437,302			3,227,184			2,350,822

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

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share		3,000,451			2,051,137			2,841,019			1,964,657

Additional common stock equivalents (stock options) used to calculate diluted earnings per share		13,689			8,274			13,139			8,522

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share		3,014,140			2,059,411			2,854,158			1,973,179

Options to purchase

21,375

shares of common stock, at prices ranging from

17.55

37.48

were outstanding during the

three

and

six

months ended

June 30, 2017.

Of those options,

21,375

were considered dilutive for the

three

and

six

month periods based on the market price exceeding the strike price and

options were anti-dilutive.

Options to purchase

31,949

shares of common stock, at prices ranging from

17.55

40.24

were outstanding during the

three

and

six

months ended

June 30, 2016.

Of those options,

24,700

were considered dilutive and

7,249

were considered anti-dilutive for the

three

and

six

month periods based on the market price exceeding the strike price.