Note 8 - Basic and Diluted Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

8. 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, 2023 and 2022:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income (numerator)	$	1,430,000	$	503,000	$	3,128,000	$	2,718,000
Shares (denominator):
Basic weighted average common shares outstanding		11,781,071		12,615,187		11,974,336		12,834,505
Add: dilutive effect of common stock options		-		73,194		-		75,365
Diluted weighted average common shares outstanding		11,781,071		12,688,381		11,974,336		12,909,870
Earnings per common share:
Basic	$	0.12	$	0.04	$	0.26	$	0.21
Diluted	$	0.12	$	0.04	$	0.26	$	0.21