Note 4 - Earnings Per Share

6 Months Ended

Jun. 30, 2022

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 Six
	Months Ended						Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Weighted-average common shares issued		7,347,526			7,324,475			7,342,930			7,320,989
Average treasury stock shares		(1,496,104	)		(1,027,404	)		(1,477,783	)		(989,633	)
Weighted-average common shares and common stock equivalents used to calculate basic earnings per share		5,851,422			6,297,071			5,865,147			6,331,356
Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share		8,676			15,159			8,676			16,989
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share		5,860,098			6,312,230			5,873,823			6,348,345

Outstanding on June 30, 2022, were 63,646 shares of restricted stock, 54,970 shares of which were anti-dilutive. There were no options to purchase shares of common stock outstanding as of June 30, 2022.

Outstanding at June 30, 2021 were 77,933 shares of restricted stock, 62,774 shares of which were anti-dilutive. There were no options to purchase shares of common stock outstanding as of June 30, 2021.

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 June 30, 2022, the Company held 1,537,175 of the Company’s shares, which is an increase of 95,364 from the 1,441,811 shares held as of December 31, 2021.