Note 4 - Earnings Per Share & Share Repurchase Plan

3 Months Ended

Mar. 31, 2019

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:

Three months ended March 31,	2019		2018
Numerator for basic and diluted earnings per share - net income	$	3,379	$	2,935
Denominator for basic earnings per share - weighted average shares outstanding		3,486,786		3,452,531
Effect of dilutive securities - employee stock options		7,643		20,374
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,494,429		3,472,905
Earnings per share - basic	$	0.97	$	0.85
Earnings per share - diluted		0.97		0.85

There were 74,150 and 25,000 stock options that were anti-dilutive for the three-month periods ended March 31, 2019 and 2018, respectively. These stock options were not included in the above calculation.

The Board of Directors has authorized the repurchase of up to 100,000 shares of its common stock in open market or privately negotiated transactions. The repurchase authorization does not bear a termination date. There were no shares repurchased during the three months ended March 31, 2019 and 2018. As of March 31, 2019, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000.