EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 6 – EARNINGS PER SHARE

The Company defines unvested share-based payment awards that contain non-forfeitable rights to dividends as participating securities that are included in computing earnings per share (EPS) using the two-class method.

The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS 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 in the issuance of common stock that then shared in the earnings of the entity.

The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated:

Periods ended March 31, (in thousands, except per share data)		2015			2014
Net income	$	2,234		$	551
Less: Preferred stock dividends declared		(40	)		(46	)
Net income available to common shareholders		2,194			505
Less: Undistributed earnings allocated to participating securities		(19	)		(6	)
Net income allocated to common stock	$	2,175		$	499
Common shares issued		2,723			1,712
Less: Unvested restricted stock awards		(24	)		(21	)
Common shares outstanding used to calculate basic earnings per common share		2,699			1,691
Add: Dilutive effect of stock options		17			—
Common shares outstanding used to calculate diluted earnings per common share		2,716			1,691
Earnings per common share (basic)	$	0.81		$	0.29
Earnings per common share (diluted)	$	0.80		$	0.29