Note 4 - Earnings Per Share

9 Months Ended

Sep. 30, 2015

4.	EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Numerator:
Net income	$	1,111,344	$	1,628,562	$	4,063,647	$	5,248,459
Numerator for basic and diluted earnings per share		1,111,344		1,628,562		4,063,647		5,248,459
Denominator:
Weighted-average shares outstanding-basic		10,175,650		10,203,711		10,199,841		10,200,411

Effect of dilutive securities:
Stock options		23,442		36,294		27,036		38,133
Restricted stock		-		1,405		-		1,565
Dilutive potential common shares		23,442		37,699		27,036		39,698
Denominator for diluted earnings per share- weighted-average shares		10,199,092		10,241,410		10,226,877		10,240,109

Basic earnings per share	$	0.11	$	0.16	$	0.40	$	0.51
Diluted earnings per share	$	0.11	$	0.16	$	0.40	$	0.51

The net effect of converting stock options and restricted stock awards of 128,833 and 119,201 shares of common stock at exercise prices less than the average market prices has been included in the computations of diluted earnings per share for the quarters ended September 30, 2015 and 2014, respectively.