Earnings Per Common Share

9 Months Ended

Sep. 30, 2020

NOTE 3. Earnings Per Common Share

Basic earnings per share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Nonvested restricted shares are included in the weighted average number of common shares used to compute basic earnings per share because of dividend participation and voting rights. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The number of potential common shares is determined using the treasury method.

The following table shows the weighted average number of shares used in computing earnings per share for the three and nine months ended September 30, 2020 and 2019. During 2020 and 2019, there were no potentially dilutive securities outstanding.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Average number of common shares outstanding		3,413,304		3,436,660		3,420,002		3,439,980
Effect of dilutive common stock		—		—		—		—
Average number of common shares outstanding used to calculate diluted earnings per share		3,413,304		3,436,660		3,420,002		3,439,980