Note 13 - Earnings Per Share

12 Months Ended

Dec. 31, 2020

13.	EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income (numerator) by the weighted average number of common shares outstanding (denominator) during the period and excludes the dilutive effect of stock options. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during a period. In computing diluted income per share, the average stock price for the period is used in determining the number of shares assumed to be reacquired under the treasury stock method for the hypothetical exercise of stock options.

The following tables represent required disclosure of the reconciliation of the income (loss) and the shares used in the basic and diluted income (loss) per share computation:

Year ended December 31, (in thousands, except per share data)	20 20		201 9
Basic
Net income	$	8,161	$	10,969
Weighted average common shares outstanding		8,920		8,873
Earnings per share	$	0.91	$	1.24

Diluted
Net income	$	8,161	$	10,969
Weighted average common shares outstanding		8,920		8,873
Effect of dilutive potential common shares: stock options		95		95
Total		9,015		8,968
Earnings per share	$	0.91	$	1.22

At both

December 31, 2020

and

2019,

there were

95,000

dilutive stock options exercisable.