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 and restricted stock 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,
	2018			2017			2018			2017
Weighted-average common shares outstanding		3,611,891			3,386,616			3,609,174			3,227,184

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		3,225,726			3,000,451			3,223,009			2,841,019

Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share		14,603			13,689			15,227			13,139

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share		3,240,329			3,014,140			3,238,236			2,854,158

Options to purchase

13,750

shares of common stock, at prices ranging from

$17.55

$23.00

were outstanding during the

three

and

six

months ended

June 30, 2018.

Also outstanding were

20,425

shares of restricted stock.

None

of the outstanding options or restricted stock were anti-dilutive.