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 Nine
	Months Ended						Months Ended
	September 30, 2019						September 30, 2019

	2019			2018			2019			2018

Weighted-average common shares issued		3,647,007			3,620,558			3,641,904			3,613,010

Average treasury stock shares		(417,878	)		(386,165	)		(398,803	)		(386,165	)

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share		3,229,129			3,234,393			3,243,101			3,226,845

Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share		10,404			13,933			10,318			15,454

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share		3,239,533			3,248,326			3,253,419			3,242,299

Options to purchase

7,250

shares of common stock at

17.55

per share, were outstanding during the

three

and

nine

months ended

September 30, 2019.

Also outstanding were

30,770

shares of restricted stock.

None

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

Options to purchase

13,600

shares of common stock, at prices ranging from

$17.55

23.00

were outstanding during the

three

and

nine

months ended

September 30, 2018.

Also outstanding were

20,425

shares of restricted stock.

None

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

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity and the resulting surplus or deficit on the transaction is presented within the share premium. The reserve for the Company’s treasury shares comprises the cost of the Company’s shares held by the Company. As of

September 30, 2019,

the Company held

435,581

of the Company’s shares, which is an increase of

31,669

for the quarter, and

49,416

for the

nine

months ended

September 30, 2019,

from the

386,165

shares held as of

December 31, 2018.