Earnings Per Common Share (EPS)

9 Months Ended

Sep. 30, 2020

Earnings Per Common Share (EPS) [Abstract]

Note 3 – Earnings Per Common Share (EPS)

The following is a summary of the earnings per share calculation for the three and nine months ended September 30, 2020 and 2019.



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

Net income	$ 1,454,000	$ 1,474,000	$ 3,270,000	$ 4,085,000

Weighted average number of shares	4,339,436	4,378,436	4,342,294	4,378,436
Restricted stock units affect of incremental shares	-	6,895	-	4,692

Weighted average diluted shares	4,339,436	4,385,331	4,342,294	4,383,128


Basic EPS (weighted avg shares)	$ 0.34	$ 0.34	$ 0.75	$ 0.93

Diluted EPS (Including incremental shares)	$ 0.34	$ 0.34	$ 0.75	$ 0.93

In 2020, all restricted stock units (RSUs) were excluded from calculating diluted earnings per share as the Company elected to settle units vesting in 2020 wholly in cash. Going forward, management has adopted a cash settlement policy for all currently outstanding RSUs. Prior to 2020, the presumption was that the shares would be settled in common stock and the RSUs were included in the calculation of diluted EPS. There were no potentially dilutive shares excluded from the 2019 earnings per share calculation because they were anti-dilutive.