Note 2 - Earnings Per Share and Share Repurchase Plan

12 Months Ended

Dec. 31, 2021

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,	2021		2020		2019
Numerator for basic and diluted earnings per share - net income	$	16,492	$	12,083	$	12,357
Denominator for basic earnings per share - weighted average shares outstanding		3,553,949		3,537,323		3,498,326
Effect of dilutive securities - employee stock options		189		37		5,824
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,554,138		3,537,360		3,504,150
Earnings per share - basic	$	4.64	$	3.42	$	3.53
Earnings per share - diluted	$	4.64	$	3.42	$	3.53

There were 90,000, 96,000, and 73,000 stock options that were anti-dilutive as of December 31, 2021, 2020, and 2019 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 and authorized the repurchase of up to 50,000 shares, increased the amount on February 9, 2009 to 100,000 shares, and subsequently increased on April 27, 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 38,017 shares purchased during the year ended December 31, 2021, 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, 2021, 100,000 shares were purchased under this authorization at an average price of $24.69 and a total cost of $2,469,000 and were recorded to Treasury stock.