Note 6. Earnings per Share (“EPS”)

Class A and Class B shares participate equally in undistributed earnings. Under the Company’s Articles of Organization, the holders of Class A Common Stock are entitled to receive dividends per share equal to at least 200% of dividends paid, if any, from time to time, on each share of Class B Common Stock.

Diluted EPS includes the dilutive effect of common stock equivalents; basic EPS excludes all common stock equivalents. The Company had no common stock equivalents outstanding for the periods ended June 30, 2017 and 2016.

The following table is a reconciliation of basic EPS and diluted EPS.


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands except share and per share data)	2017		2016		2017		2016
Basic EPS Computation:
Numerator:
Net income, Class A	$	6,410	$	4,902	$	11,198	$	9,071
Net income, Class B		1,747		1,339		3,055		2,478
Denominator:
Weighted average shares outstanding, Class A		3,603,729		3,600,729		3,602,229		3,600,729
Weighted average shares outstanding, Class B		1,964,180		1,967,180		1,965,680		1,967,180
Basic EPS, Class A	$	1.78	$	1.36	$	3.11	$	2.52
Basic EPS, Class B		0.89		0.68		1.55		1.26

Diluted EPS Computation:
Numerator:
Net income, Class A	$	6,410	$	4,902	$	11,198	$	9,071
Net income, Class B		1,747		1,339		3,055		2,478

Total net income, for diluted EPS, Class A computation		8,157		6,241		14,253		11,549
Denominator:
Weighted average shares outstanding, basic, Class A		3,603,729		3,600,729		3,602,229		3,600,729
Weighted average shares outstanding, Class B		1,964,180		1,967,180		1,965,680		1,967,180

Weighted average shares outstanding diluted, Class A		5,567,909		5,567,909		5,567,909		5,567,909
Weighted average shares outstanding, Class B		1,964,180		1,967,180		1,965,680		1,967,180
Diluted EPS, Class A	$	1.47	$	1.12	$	2.56	$	2.07
Diluted EPS, Class B		0.89		0.68		1.55		1.26