Earnings per Share

9 Months Ended

Sep. 30, 2015

Note 2 - Earnings per Share

The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company.

	Three months ended		Nine months ended
	September30,		September30,
	2015	2014	2015	2014
Net income applicable to common stock	$2,857,000	$3,368,000	$9,166,000	$9,909,000

Basic earnings per share computation
Weighted average common shares outstanding	3,011,687	3,035,214	3,019,202	3,038,973
Earnings per share - basic	$0.95	$1.11	$3.04	$3.26

Diluted earnings per share computation
Weighted average common shares outstanding for basic earnings per share	3,011,687	3,035,214	3,019,202	3,038,973
Add: Dilutive effects of restricted stock	1,464	1,486	1,468	1,427
Weighted average common shares outstanding for dilutive earnings per share	3,013,151	3,036,700	3,020,670	3,040,400
Earnings per share - diluted	$0.95	$1.11	$3.03	$3.26

For the three months ended September 30, 2015 and 2014, there were 2,696 and 1,938 shares, respectively, related to the restricted stock plan that were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had prices ranging from $44.50-$53.15 for the three month period ended September 30, 2015 and prices ranging from $34.70-$50.50 for the three month period ended September 30, 2014. For the nine months ended September 30, 2015 and 2014, 2,696 and 2,913 shares, respectively, related to the restricted stock plan were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had prices ranging from $44.50-$53.15 for the nine month period ended September 30, 2015 and prices ranging from $34.70-$50.50 for the nine month period ended September 30, 2014.