Note 4 - Earnings Per Share & Share Repurchase Plan

6 Months Ended

Jun. 30, 2021

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 June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Numerator for basic and diluted earnings per share - net income	$	3,869	$	3,934	$	8,919	$	4,154
Denominator for basic earnings per share - weighted average shares outstanding		3,556,550		3,532,079		3,555,804		3,527,373
Effect of dilutive securities - employee stock options		693		—		—		1,018
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,557,243		3,532,079		3,555,804		3,528,391
Earnings per share - basic	$	1.09	$	1.11	$	2.51	$	1.18
Earnings per share - diluted		1.09		1.11		2.51		1.18

There were 94,400 and 118,000 stock options that were anti-dilutive for the three-month periods ended June 30, 2021 and 2020, respectively. There were 119,400 and 98,150 stock options that were anti-dilutive for the six-month periods ended June 30, 2021 and 2020, respectively. These stock options were not included in the above calculation.

QNB’s current stock repurchase plan was originally approved by the Board of Directors on January 21, 2008, increased the amount on February 9, 2009 to 100,000 shares, and subsequently increased on April 29, 2021 up to 200,000 shares of its common stock in the open market or privately negotiated transactions. The repurchase authorization has no termination date. There were 18,391 and no shares repurchased during the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, 80,374 shares were repurchased under this authorization at an average price of $21.72 and a total cost of approximately $1,745,000.