Note 9 - Basic and Diluted Earnings Per Common Share

9 Months Ended

Sep. 30, 2015

9.	Basic and Diluted Earnings Per Common Share

The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to dilutive shares, and “diluted” EPS, which includes all such dilutive shares, for the three and nine months ended September 30, 2015 and 2014.

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Net income (numerator)	$	306,000	$	966,000	$	741,000	$	2,130,000

Shares (denominator):
Basic weighted average common shares outstanding		18,276,616		18,107,073		18,261,747		18,429,985
Add: dilutive effect of common stock options		22,663		280,349		97,978		259,289

Diluted weighted average common shares outstanding		18,299,279		18,387,422		18,359,725		18,689,274

Earnings per common share:
Basic	$	0.02	$	0.05	$	0.04	$	0.12
Diluted	$	0.02	$	0.05	$	0.04	$	0.11