Earnings per Share

3 Months Ended

Mar. 31, 2017

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
	March 31,
	2017		2016
Net income applicable to common stock	$	3,303,000	$	3,283,000

Basic earnings per share computation
Weighted average common shares outstanding		3,313,616		3,356,573
Earnings per share - basic	$	1.00	$	0.98

Diluted earnings per share computation
Weighted average common shares outstanding for basic earnings per share		3,313,616		3,356,573
Add: Dilutive effects of restricted stock		20		-
Weighted average common shares outstanding for dilutive earnings per share		3,313,636		3,356,573
Earnings per share - diluted	$	1.00	$	0.98

For the three months ended March 31, 2017 and 2016, there were 2,087 and 5,325 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 $49.87-$53.15 for the three month period ended March 31, 2017 and per share prices ranging from $46.69-$53.15 for the three month period ended March 31, 2016.