Note 9 - Basic and Diluted Earnings Per Common Share

9 Months Ended

Sep. 30, 2020

9. Basic and Diluted Earnings per Common Share:

The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation (Dollar amounts in thousands of US dollars, except for share data):

	*Three Months Ended September 30,*				*Nine Months Ended September 30,*
	*2020*		*2019*		*2020*		*2019*

Numerator for basic and diluted earnings per common share:
Net income for the period	$	716	$	4,205	$	3,707	$	9,620

Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		10,577,731		10,626,754		10,585,785		10,639,544
Effect of outstanding stock options		105,077		119,080		93,377		158,555
Diluted weighted average number of shares outstanding		10,682,808		10,745,834		10,679,162		10,798,099

Basic earnings per common share	$	0.07	$	0.40	$	0.35	$	0.90

Diluted earnings per common share	$	0.07	$	0.39	$	0.35	$	0.89

For the three months ended September 30, 2020, options to purchase 87,659 common shares were not included in the computation of diluted income per common share because the options’ exercise price was greater than the average market price of the common shares for the period as compared to the three months ended September 30, 2019, where 599,140 outstanding options were not included in the computation.

For the nine months ended September 30, 2020, options to purchas e 130,876 common shares were not included in the computation of diluted income per common share because the options’ exercise price was greater than the average market price of the common shares for the period as compared to the nine months ended September 30, 2019, where 531,200 outstanding options were not included in the computation.