Earnings Per Share

6 Months Ended

Jun. 30, 2022

Note 7. Earnings Per Share

Basic income per share is calculated as income applicable to common shareholders divided by the weighted average of common shares outstanding. Diluted earnings per share is calculated as diluted income applicable to common shareholders divided by the diluted weighted average number of common shares. Diluted weighted average number of common shares gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted earnings per share exclude all diluted potential shares if their effect is anti-dilutive. All common stock options listed in Note 4 that were out-of-the-money or anti-dilutive were excluded from diluted earnings per share. The following is provided to reconcile the earnings per share calculations:


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Income applicable to common shares	$	664,873	$	115,510	$	1,049,274	$	762,057

Weighted average common shares outstanding - basic		4,514,492		4,497,903		4,512,396		4,488,913

Effect of dilution		27,327		28,159		27,592		27,565
Weighted average shares outstanding - diluted		4,541,819		4,526,062		4,539,988		4,516,478