EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 4. EARNINGS PER SHARE

Basic earnings per share is computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (shares in thousands):

	Three months ended September 30,
	2020			2019
		Per Share			Per Share
	Shares	Amount		Shares	Amount
Basic	18,218	$	0.59	18,056	$	0.52
Effect of dilutive stock options	643		(0.02)	653		(0.02)
Diluted	18,861	$	0.57	18,709	$	0.50

	Nine months ended September 30,
	2020			2019
		Per Share			Per Share
	Shares	Amount		Shares	Amount
Basic	18,186	$	0.46	17,997	$	1.42
Effect of dilutive stock options	637		(0.02)	668		(0.05)
Diluted	18,823	$	0.44	18,665	$	1.37

Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the market price as their effects would be anti-dilutive in the computation of diluted earnings per share. For the three months ended September 30, 2020 and 2019, options for approximately 1,062 thousand and 847 thousand shares, respectively, were excluded from the computation. For the nine months ended September 30, 2020 and 2019, options for approximately 1,077 thousand and 795 thousand shares, respectively, were excluded from the computation.