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 March 31,
	2018		2017
Common shares outstanding, beginning of the period		11,885,839		11,749,589
Weighted average common shares issued		43,223		26,308
Weighted average number of common shares outstanding		11,929,062		11,775,897
Dilutive effect of common share equivalents		-		306,395
Diluted weighted average number of common shares outstanding		11,929,062		12,082,292

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

	Three Months Ended March 31,
	2018		2017
Stock options		1,153,894		678,100