Note 4 – 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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Weighted average number of shares for calculation of basic EPS		36,523,742		36,776,545		36,560,193		36,698,618
Stock options under equity incentive plans		143,257		63,826		103,033		97,550
Weighted average number of shares for calculation of diluted EPS		36,666,999		36,840,371		36,663,226		36,796,168

The following 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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Stock options under equity incentive plans		1,530,000		1,857,284		1,742,500		1,857,284