Note 3 - Net Income Per Share

9 Months Ended

Sep. 30, 2016

3.	NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Included in basic shares are certain shares that have been accrued as of the balance sheet date as deferred comp

ensation for members of the Company's Board of Directors. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period. The dilutive shares consist of shares issuable upon the exercise of nonqualified stock options granted to employees and members of the Company’s Board of Directors pursuant to the Company's 2013 Incentive Plan (the “2013 Incentive Plan”) previously approved by the Company’s shareholders. The following table reflects weighted average shares used to calculate basic and diluted net income per share for the periods presented.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Basic shares		6,151,701		6,139,148		6,147,325		6,137,207
Dilutive shares		272,550		177,050		272,550		177,050
Diluted shares		6,424,251		6,316,198		6,419,875		6,314,257

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
	(Dollars in Thousands, Except Per Share Data)
Net income	$	550	$	544	$	1,329	$	2,154
Basic net income per share	$	0.09	$	0.09	$	0.22	$	0.35
Diluted net income per share	$	0.09	$	0.09	$	0.21	$	0.34