Note 4 - Earnings Per Share

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 4 - EARNINGS PER SHARE

The Company provides a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the average shares outstanding. Diluted earnings per share adds the dilutive effects of stock options and restricted stock to average shares outstanding.

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 Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Weighted-average common shares issued		7,329,548			7,305,653			7,323,936			7,301,091
Average treasury stock shares		(1,192,900	)		(929,362	)		(1,058,133	)		(913,510	)
Weighted-average common shares and common stock equivalents used to calculate basic earnings per share		6,136,648			6,376,291			6,265,803			6,387,581
Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share		20,533			9,474			21,753			10,093
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share		6,157,181			6,385,765			6,287,556			6,397,674

Outstanding on September 30, 2021, were 77,933 shares of restricted stock, 57,400 shares of which were anti-dilutive. There were no options to purchase shares of common stock outstanding as of September 30, 2021.

Options to purchase 13,000 shares of common stock at $8.78 per share were outstanding during the three and nine months ended September 30, 2020. Also outstanding were 67,760 shares of restricted stock, 67,405 shares of which 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 September 30, 2021, the Company held 1,275,465 of the Company’s shares, which is an increase of 346,103 from the 929,362 shares held as of December 31, 2020.