Note 9 - Basic and Diluted Earnings Per Common Share

3 Months Ended

Mar. 31, 2021

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 March 31,*
	*2021*		*2020*

Numerator for basic and diluted earnings per common share:
Net income for the period	$	2,149	$	2,834

Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		10,617,807		10,612,230
Effect of outstanding stock options		178,955		101,448
Diluted weighted average number of shares outstanding		10,796,762		10,713,678

Basic earnings per common share	$	0.20	$	0.27

Diluted earnings per common share	$	0.20	$	0.26

For the three months ended March 31, 2021, options to purchase 4,004 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 March 31, 2020, where 138,506 outstanding options were not included in the computation.