Note 3 – Earnings Per Share

Basic earnings per share are computed by dividing net income by the weighted average number of shares of stock outstanding during the period. The Company’s diluted earnings per share give effect to all potential Common Stock outstanding during a period that do not have an anti-dilutive impact to the calculation. In computing the diluted earnings per share, the treasury stock method is used in determining the number of shares assumed to be issued from the exercise of Common Stock equivalents.

The following summarizes the Common Stock included in the basic and diluted shares, as disclosed on the face of the consolidated condensed statements of income:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Weighted average number of shares for calculation of basic EPS		36,742,168		36,477,044		36,713,294		36,425,626
Stock options under equity incentive plans		62,908		117,537		117,919		132,737
Weighted average number of shares for calculation of diluted EPS		36,805,076		36,594,581		36,831,213		36,558,363

The accompanying table represents Common Stock issuable upon the exercise of certain stock options that have been excluded from the diluted earnings calculation because the effect of their inclusion would be anti-dilutive.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Stock options outstanding for equity incentive plans		1,845,784		1,455,534		1,845,784		1,455,534