Note 4 - Earnings Per Share

9 Months Ended

Sep. 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 Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Weighted-average common shares issued		7,350,616			7,329,548			7,345,520			7,323,936
Average treasury stock shares		(1,557,843	)		(1,192,900	)		(1,504,763	)		(1,058,133	)
Weighted-average common shares and common stock equivalents used to calculate basic earnings per share		5,792,773			6,136,648			5,840,757			6,265,803
Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share		13,026			20,533			13,026			21,753
Weighted-average common shares and common stock equivalents used  to calculate diluted earnings per share		5,805,799			6,157,181			5,853,783			6,287,556

Outstanding on September 30, 2022, were 63,646 shares of restricted stock, 50,620 shares of which were anti-dilutive.

Outstanding on September 30, 2021 were 77,933 shares of restricted stock, 57,400 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, 2022, the Company held 1,582,813 of the Company’s shares, which is an increase of 141,002 from the 1,441,811 shares held as of December 31, 2021.