Note 4 - Earnings Per Share & Share Repurchase Plan

6 Months Ended

Jun. 30, 2022

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,
	2022		2021		2022		2021
Numerator for basic and diluted earnings per share - net income	$	3,349	$	3,869	$	7,059	$	8,919
Denominator for basic earnings per share - weighted average shares outstanding		3,559,185		3,556,550		3,556,037		3,555,804
Effect of dilutive securities - employee stock options		—		693		531		-
Denominator for diluted earnings per share - adjusted weighted average shares outstanding		3,559,185		3,557,243		3,556,568		3,555,804
Earnings per share - basic	$	0.94	$	1.09	$	1.99	$	2.51
Earnings per share - diluted		0.94		1.09		1.98		2.51

There were 121,225 and 94,400 stock options that were anti-dilutive for the three-month periods ended June 30, 2022 and 2021, respectively. There were 97,225 and 119,400 stock options that were anti-dilutive for the six-month periods ended June 30, 2022 and 2021, 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 in amount on February 9, 2009 to 100,000 shares, and subsequently increased on April 29, 2021 to up to 200,000 shares of common stock in the open market or privately negotiated transactions. The repurchase authorization has no termination date. There were 2,000 and 18,391

shares repurchased during the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, 102,000 shares were repurchased under this authorization at an average price of $24.93 and a total cost of approximately $2,543,000.