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Note 4 - Earnings Per Share
 3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Earnings Per Share [Text Block]

NOTE 4 - EARNINGS PER SHARE

 

The Company provides a 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

  
   

Months Ended

  
   

March 31,

  
   

2022

    

2021

  
                 

Weighted-average common shares issued

     7,338,283       7,315,574  
                 

Average treasury stock shares

     (1,459,258 )     (951,442 )
                 

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share

     5,879,025       6,364,132  
                 

Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share

     10,811       14,361  
                 

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share

     5,889,836       6,378,493  

 

Outstanding on March 31, 2022, were 76,601 shares of restricted stock, 65,790 shares of which were anti-dilutive. There were no options to purchase shares of common stock outstanding as of March 31, 2022.

 

Outstanding on March 31, 2021, were 97,500 shares of restricted stock, 89,069 shares of which were anti-dilutive. There were no options to purchase shares of common stock outstanding as of March 31, 2021.

 

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 March 31, 2022, the Company held 1,473,961 of the Company’s shares, which is an increase of 32,150 from the 1,441,811 shares held as of December 31, 2021.