Note 13 - Earnings Per Share

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

13. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income (numerator) by the weighted average number of common shares outstanding (denominator) during the period and excludes the dilutive effect of stock options. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during a period. In computing diluted income per share, the average stock price for the period is used in determining the number of shares assumed to be reacquired under the treasury stock method for the hypothetical exercise of stock options.

The following tables represent required disclosure of the reconciliation of the income (loss) and the shares used in the basic and diluted income (loss) per share computation:

Year ended December 31, (in thousands, except per share data):	2021		2020
Numerator:
Net Income	$	9,039	$	8,161
Denominator:
Weighted-average basic shares outstanding		8,777		8,920
Effect of dilutive securities		33		95
Weighted-average diluted shares		8,810		9,015
Basic earnings per share	$	1.03	$	0.91
Diluted earnings per share	$	1.03	$	0.91

At December 31, 2021 and 2020, there were 33,000 and 95,000 dilutive stock options exercisable, respectively.