Note 2 - Earnings Per Share

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

2.

Earnings Per Share

There are

no

convertible securities which would affect the numerator in calculating basic and diluted earnings per share; therefore, net income as presented on the Consolidated Statement of Income is used as the numerator.

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended
	March 31,
	2020		2019
(Dollars in thousands, except share and per share data)
Net income	$	773	$	2,925
Weighted-Average Basic Common Shares Outstanding		5,431,199		5,432,856
Dilutive Effect of Common Stock Equivalents (Stock Options and Restricted Stock)		25,668		18,622
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding		5,456,867		5,451,478
Earnings per share:
Basic	$	0.14	$	0.54
Diluted		0.14		0.54

The dilutive effect on weighted average diluted common shares outstanding is the result of outstanding stock options and nonvested restricted stock. For the

three

months ended

March 31, 2020

and

2019,

options to purchase

78,545

and

83,688

shares of common stock, respectively, were outstanding but were

not

included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares for the period, therefore the effect would be antidilutive. For the

three

months ended

March 31, 2020,

30,250

shares of restricted stock awards were

not

included in the computation of diluted earnings per share because the hypothetical repurchase of shares under the treasury stock method exceeded the weighted average nonvested restricted awards, therefore the effect would be anti-dilutive. For the

three

months ended

March 31, 2019,

there were

no

anti-dilutive restricted stock awards.