Note 4 - Earnings Per Share & Share Repurchase Plan

3 Months Ended

Mar. 31, 2023

Earnings Per Share & Share Repurchase Plan

4. EARNINGS PER SHARE & SHARE REPURCHASE PLAN

The following sets forth the computation of basic and diluted earnings per share:


	For the Three Months Ended March 31,
	2023		2022
Numerator for basic and diluted earnings per share - net income	$	4,118	$	3,710
Denominator for basic earnings per share - weighted average shares outstanding		3,588,363		3,552,854
Effect of dilutive securities - employee stock options		—		1,602
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,588,363		3,554,456
Earnings per share - basic	$	1.15	$	1.04
Earnings per share - diluted		1.15		1.04

There were 121,550 and 92,200 stock options that were anti-dilutive for the three-month periods ended March 31, 2023 and 2022, respectively. These stock options were not included in the above calculation.

QNB’s current stock repurchase plan was originally approved by the Board of Directors on January 21, 2008, increased in amount on February 9, 2009 to 100,000 shares, and subsequently increased on April 29, 2021 to up to 200,000 shares of common stock in the open market or privately negotiated transactions. The repurchase authorization has no termination date. There were 0 and 2,000 shares repurchased during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, 102,000 shares were repurchased under this authorization at an average price of $24.93 and a total cost of approximately $2,543,000.