Note

16.

EARNINGS PER SHARE

For FNCB, the numerator of both the basic and diluted earnings per share

of common stock is net income available to common shareholders. The weighted average number of common shares outstanding used in the denominator for basic earnings per common share is increased to determine the denominator used for diluted earnings per common share by the effect of potentially dilutive common share equivalents utilizing the treasury stock method. Common share equivalents are outstanding stock options to purchase FNCB’s shares of common stock and unvested restricted stock.

The following table presents the calculation of both basic and diluted earnings per share

of common stock for the years ended

December 31, 2019 and

2018

	For the Year Ended December 31,
(in thousands, except share data)	2019		2018
Net income	$	11,075	$	13,349

Basic weighted-average number of common stock outstanding		19,802,095		16,799,004
Plus: common share equivalents		5,497		21,749
Diluted weighted-average number of common stock outstanding		19,807,592		16,820,753

Income per share of common stock:
Basic	$	0.56	$	0.79
Diluted	$	0.56	$	0.79

For each of the years ended

December 31,

2019

and

2018

common stock equivalents reflected in the table above were related entirely to the incremental shares of unvested restricted stock. For the year ended

December 31,

2018,

stock options of

19,200

shares were excluded from common stock equivalents. The exercise prices of stock options exceeded the average market price of FNCB’s common stock during the periods presented; therefore, inclusion of these common stock equivalents would be anti-dilutive to the diluted earnings per share of common stock calculation. On January

2019,

the stock options expired and were forfeited.