Earnings per Share

3 Months Ended

Mar. 31, 2013

Earnings per Share

Earnings per Share

Note 8.  Earnings per Share

For the Company, the numerator of both the basic and diluted earnings per common share is net income available to common shareholders (which is equal to net income less dividends on preferred stock and related discount accretion). The weighted average number of common shares outstanding used in the denominator for basic earnings per common share is increased to determine the denominator used for diluted earnings per common share by the effect of potentially dilutive common share equivalents utilizing the treasury stock method. For the Company, common share equivalents are outstanding stock options to purchase the Company’s common shares.

The following table presents the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2013 and 2012:

	Three months ended
	March 31,
(in thousands, except share data)	2013		2012
Net income (loss)	$	1,731	$	(1,165	)
Basic weighted-average number of common shares outstanding	16,457,169		16,442,119
Plus: Common share equivalents	—		—
Diluted weighted-average number of common shares outstanding	16,457,169		16,442,119
Loss per common share:
Basic	$	0.11	$	(0.07	)
Diluted	$	0.11	$	(0.07	)

Common share equivalents, in the table above, exclude 129,170 (2013) and 188,193 (2012) stock options with exercise prices that exceed the average market price of the Company’s common shares during the periods presented.  Inclusion of these stock options would be anti-dilutive to the diluted earnings per common share calculation.