Note 4 - Earnings Per Share & Share Repurchase Plan

9 Months Ended

Sep. 30, 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:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator for basic and diluted earnings per share - net income	$	3,090	$	3,211	$	9,612	$	9,008
Denominator for basic earnings per share - weighted average shares outstanding		3,501,771		3,466,672		3,494,471		3,459,906
Effect of dilutive securities - employee stock options		6,546		22,389		7,036		21,083
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,508,317		3,489,061		3,501,507		3,480,989
Earnings per share - basic	$	0.88	$	0.93	$	2.75	$	2.60
Earnings per share - diluted		0.88		0.92		2.75		2.59

There were 73,150 and 25,000 stock options that were anti-dilutive for the three-month periods ended September 30, 2019 and 2018, respectively. There were 73,150 and 25,000 stock options that were anti-dilutive for the nine-month periods ended September 30, 2019 and 2018, respectively. These stock options were not included in the above calculation.

QNB’s current stock repurchase plan was approved by the Board of Directors on January 21, 2008 and subsequently increased on February 9, 2009 and 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 nine months ended September 30, 2019 and 2018. As of September 30, 2019, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000.