Note 2 - Earnings Per Share and Share Repurchase Plan

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 2 – Earnings Per Share and Share Repurchase Plan

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

Year ended December 31,	2013		2012
Numerator for basic and diluted earnings per share - net income	$	8,392	$	9,175
Denominator for basic earnings per share - weighted average shares outstanding		3,248,397		3,197,204
Effect of dilutive securities - employee stock options		11,678		12,653
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,260,075		3,209,857
Earnings per share - basic	$	2.58	$	2.87
Earnings per share - diluted	$	2.57	$	2.86

There were 49,800 and 51,600 stock options that were anti-dilutive as of December 31, 2013 and 2012, respectively. These stock options were not included in the above calculation.

On January 24, 2008, QNB announced that the Board of Directors authorized the repurchase of up to 50,000 shares of its common stock in open market or privately negotiated transactions. On February 9, 2009, the Board of Directors approved increasing the authorization to 100,000 shares. The repurchase authorization does not bear a termination date. There were no shares repurchased during the years ended December 31, 2013 or 2012. As of December 31, 2013 and 2012, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000.