Note 2 - Earnings Per Share and Share Repurchase Plan

12 Months Ended

Dec. 31, 2014

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,	2014		2013
Numerator for basic and diluted earnings per share - net income	$	8,998	$	8,392
Denominator for basic earnings per share - weighted average shares outstanding		3,291,939		3,248,397
Effect of dilutive securities - employee stock options		10,635		11,678
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,302,574		3,260,075
Earnings per share - basic	$	2.73	$	2.58
Earnings per share - diluted	$	2.72	$	2.57

There were 28,700 and 49,800 stock options that were anti-dilutive as of December 31, 2014 and 2013, 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, 2014 or 2013. As of December 31, 2014 and 2013, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000 and recorded to Treasury stock.