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Note 4 - Earnings Per Share

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 4 - 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,								September 30,
		2020				2019				2020				2019

Weighted-average common shares issued			7,305,653				7,294,014				7,301,091				7,283,808

Average treasury stock shares			(929,362	)			(835,756	)			(913,510	)			(797,606	)

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share			6,376,291				6,458,258				6,387,581				6,486,202

Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share			9,474				20,808				10,093				20,636

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share			6,385,765				6,479,066				6,397,674				6,506,838

Options to purchase 13,000 shares of common stock at $8.78 per share were outstanding during the three and nine months ended September 30, 2020. All options were dilutive. Also outstanding were 67,760 shares of restricted stock, 67,405 shares of which were anti-dilutive.

Options to purchase 14,500 shares of common stock at $8.78 per share were outstanding during the three and nine months ended September 30, 2019. Also outstanding were 61,540 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. The reserve for the Company’s treasury shares comprises the cost of the Company’s shares held by the Company. As of September 30, 2020, the Company held 929,362 of the Company’s shares, which is an increase of 58,200 from the 871,162 shares held as of December 31, 2019.