3.	EARNINGS PER SHARE

There are

convertible securities that would affect the numerator in calculating basic and diluted earnings per share; therefore, net income as presented on the Consolidated Statement of Income will be used as the numerator. The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the year ended

December 31:

	2019			2018

Weighted-average common shares issued		7,286,554			7,232,238

Average treasury stock shares		(816,146	)		(772,330	)

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share		6,470,408			6,459,908

Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share		32,398			27,906

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share		6,502,806			6,487,814

Options to purchase

14,500

shares of common stock at

$8.78

a share were outstanding during the year ended

December 31, 2019.

Also outstanding were

61,040

shares of restricted stock.

None

of the outstanding options or restricted stock were anti-dilutive.

Options to purchase

14,900

shares of common stock at

$8.78

a share were outstanding during the year ended

December 31, 2018.

Also outstanding were

42,350

shares of restricted stock.

None

of the outstanding options or restricted stock were anti-dilutive.

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. The reserve for the Company’s treasury shares comprises the cost of the Company’s shares held by the Company. As of

December 31, 2019,

the Company held

871,162

of the Company’s shares, which is an increase of

98,832

shares for the

twelve

months ended

December 31, 2019,

from the

772,330

shares held as of

December 31, 2018.