Note 9 - Basic and Diluted Earnings Per Common Share

6 Months Ended

Jun. 30, 2016

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 six months ended June 30, 2016 and 2015.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Net income (numerator)	$	797,000	$	288,000	$	1,304,000	$	436,000

Shares (denominator):
Basic weighted average common shares outstanding		17,211,268		18,208,947		17,440,299		18,254,188
Add: dilutive effect of common stock options		-		99,859		-		134,040

Diluted weighted average common shares outstanding		17,211,268		18,308,806		17,440,299		18,388,228

Earnings per common share:
Basic	$	0.05	$	0.02	$	0.07	$	0.02
Diluted	$	0.05	$	0.02	$	0.07	$	0.02