Earnings Per Share

3 Months Ended

Mar. 31, 2017

Note 2.

Earnings per Share.

Per share data is determined by using the weighted average number of common shares outstanding. Common equivalent shares are considered only for diluted earnings per share, unless considered anti-dilutive. Common equivalent shares, determined using the treasury stock method, result from stock options with exercise prices that are below the average market price of the common stock.

Basic earnings per share include no dilution and are computed by dividing income available to common shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflect the potential of securities that could share in our earnings. There were common stock equivalents of 678,100 and 969,500 shares outstanding at March 31, 2017 and 2016, respectively, consisting of stock options that were not included in the calculation of earnings per share because they would have been anti-dilutive.

A reconciliation of the weighted average number of common shares outstanding is as follows:

	Three Months Ended March 31,
	2017		2016
Common shares outstanding, beginning of the period		11,749,589		11,710,745
Weighted average common shares issued		26,308		0
Weighted average number of common shares outstanding		11,775,897		11,710,745
Dilutive effect of common share equivalents		306,395		216,379
Diluted weighted average number of common shares outstanding		12,082,292		11,927,124