Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share

Earnings Per Share

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 September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Income applicable to common stock	$	442,703	$	662,644	$	1,491,977	$	1,424,701
Weighted average common shares outstanding - basic		4,516,518		4,500,256		4,513,785		4,492,736
Effect of dilution - stock options		28,133		31,267		27,805		29,010
Weighted average shares outstanding - diluted		4,544,651		4,531,523		4,541,590		4,521,746