Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share

Earnings Per Share

16. Earnings Per Share

Earnings per share of common stock is calculated on both a basic and diluted basis based on the weighted average number of common and common equivalent shares outstanding, excluding common shares in treasury.  Basic earnings per share excludes dilution and is computed by dividing income available to stockholders by the weighted average number of common shares outstanding for the period.  Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then would share in earnings.

A reconciliation of the numerators and denominators used in basic and diluted earnings per share computations is presented in the table below.  Excluded from the diluted earnings per share calculation were options to purchase 2,601 shares of common stock for the year ended December 31, 2013 and 259,373 shares of common stock for the year ended December 31, 2012, as the exercise prices exceeded the stock price at the end of each period

	Income/(Loss)		Shares	Per Share
	(numerator)		(denominator)	Amount
	(dollars in thousands, except share data)
For the year ended December 31, 2013:
Net income applicable to earnings per share	$	8,993
Basic earnings per share: Income available to common stockholders	8,993		15,798,885	$	0.57
Effect of dilutive securities: Warrants and stock option plans	—		811,069
Diluted earnings per share: Income available to common stockholders	$	8,993	16,609,954	$	0.54
For the year ended December 31, 2012:
Net income applicable to earnings per share	$	15,776
Basic earnings per share: Income available to common stockholders	15,776		10,571,073	$	1.49
Effect of dilutive securities: Warrants and stock option plans	—		412,961
Diluted earnings per share: Income available to common stockholders	$	15,776	10,984,034	$	1.44
For the year ended December 31, 2011:
Net income applicable to earnings per share	$	10,572
Basic earnings per share: Income available to common stockholders	10,572		10,092,181	$	1.05
Effect of dilutive securities: Warrants and stock option plans	—		538,539
Diluted earnings per share: Income available to common stockholders	$	10,572	10,630,720	$	0.99