Note 4 - Earnings Per Share & Share Repurchase Plan

3 Months Ended

Mar. 31, 2020

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,
	2020		2019
Numerator for basic and diluted earnings per share - net income	$	220	$	3,379
Denominator for basic earnings per share - weighted average shares outstanding		3,522,667		3,486,786
Effect of dilutive securities - employee stock options		2,788		7,643
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,525,455		3,494,429
Earnings per share - basic	$	0.06	$	0.97
Earnings per share - diluted		0.06		0.97

There were 98,150 and 74,150 stock options that were anti-dilutive for the three-month periods ended March 31, 2020 and 2019, 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 has no termination date. There were no shares repurchased during the three months ended March 31, 2020 and 2019. As of March 31, 2020, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000.