Earnings Per Share

6 Months Ended

Jun. 30, 2017

Note 3.

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.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Common shares outstanding, beginning of the period		11,857,026		11,710,745		11,749,589		11,710,745
Weighted average common shares issued		2,901		22,989		68,554		11,495
Weighted average number of common shares outstanding		11,859,927		11,733,734		11,818,143		11,722,240
Dilutive effect of common share equivalents		426,329		-		339,974		221,602
Diluted weighted average number of common shares outstanding		12,286,256		11,733,734		12,158,117		11,943,842

Common stock equivalents that have been excluded from the calculation of earnings per share because they would have been anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Stock options		7,500		659,000		525,600		909,000