Note 2 - Earnings Per Share and Share Repurchase Plan

12 Months Ended

Dec. 31, 2020

Earnings Per Share and Share Repurchase Plan

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,	2020		2019		2018
Numerator for basic and diluted earnings per share - net income	$	12,083	$	12,357	$	11,335
Denominator for basic earnings per share - weighted average shares outstanding		3,537,323		3,498,326		3,463,450
Effect of dilutive securities - employee stock options		37		5,824		19,059
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,537,360		3,504,150		3,482,509
Earnings per share - basic	$	3.42	$	3.53	$	3.27
Earnings per share - diluted	$	3.42	$	3.53	$	3.25

There were 96,000, 73,000, and 25,000 stock options that were anti-dilutive as of December 31, 2020, 2019, and 2018 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 4,100 shares repurchased during the year ended December 31, 2020, and no shares purchased during the year ended December 31, 2019. As of December 31, 2020, 61,983 shares were repurchased under this authorization at an average price of $17.95 and a total cost of $1,112,000 and were recorded to Treasury stock.