Earnings per Share

9 Months Ended

Sep. 30, 2016

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
	September 30,				September 30,
	2016		2015		2016		2015
Net income applicable to common stock	$	3,153,000	$	2,857,000	$	9,467,000	$	9,166,000

Basic earnings per share computation
Weighted average common shares outstanding		3,339,962		3,044,311		3,346,623		3,051,826
Earnings per share - basic	$	0.94	$	0.94	$	2.83	$	3.00

Diluted earnings per share computation
Weighted average common shares outstanding for basic earnings per share		3,339,962		3,044,311		3,346,623		3,051,826
Add: Dilutive effects of restricted stock		1,694		1,464		1,698		1,468
Weighted average common shares outstanding for dilutive earnings per share		3,341,656		3,045,775		3,348,321		3,053,294
Earnings per share - diluted	$	0.94	$	0.94	$	2.83	$	3.00

For the three months ended September 30, 2016 and 2015, there were 3,804 and 2,696 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 per share prices ranging from $46.69-$53.15 for the three month period ended September 30, 2016 and per share prices ranging from $44.50-$53.15 for the three month period ended September 30, 2015. For the nine months ended September 30, 2016 and 2015, 3,804 and 2,696 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 per share prices ranging from $46.69-$53.15 for the nine month period ended September 30, 2016 and per share prices ranging from $44.50-$53.15 for the nine month period ended September 30, 2015.