Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share

Earnings Per Share

Note 6 - Earnings Per Share

Basic earnings per share have been computed by dividing net income available for common shareholders by the weighted-average number of common shares outstanding for the period.  Diluted earnings per share have been computed the same as basic earnings per share, and assumes the conversion of outstanding stock options, convertible preferred stock and warrants, if dilutive.  The following table reconciles the basic and diluted earnings per share computations for the quarters ending June 30, 2014 and 2013.

	Quarter ended June 30, 2014						Quarter ended June 30, 2013
	Income			Weighted Average Shares	Per Share Amount		Income			Weighted- Average Shares	Per Share Amount
Basic earnings per share:
Net income	$	733					$	788
Less: Dividends and accretion on preferred stock	(127		)				(176		)
Net income available to common shareholders	$	606		1,968,777	$	0.31	$	612		1,968,777	$	0.31
Effect of dilutive securities
Convertible preferred stock	—			—			—			—
Stock options	—			—			—			—
Warrants	—			130,338			—			106,091
Diluted earnings per share
Net income available to common shareholders and assumed conversions	$	606		2,099,115	$	0.29	$	612		2,074,868	$	0.30

	Six months ended June 30, 2014						Six months ended June 30, 2013
	Income			Weighted Average Shares	Per Share Amount		Income			Weighted- Average Shares	Per Share Amount
Basic earnings per share
Net income	$	1,424					$	903
Less: Dividends and accretion on preferred stock	(259		)				(393		)
Net income available to common shareholders	$	1,165		1,968,777	$	0.59	$	510		1,968,777	$	0.26
Effect of dilutive securities
Convertible preferred stock	—			—			—			—
Stock options	—			—			—			—
Warrants	—			125,995			—			109,350
Diluted earnings per share
Net income available to common shareholders and assumed conversions	$	1,165		2,094,772	$	0.56	$	510		2,078,127	$	0.25

Stock options for 72,931 shares of common stock were not considered in computing diluted earnings per common share for June 30, 2014 and 2013 because they are anti-dilutive.  Convertible preferred shares are not included because they are anti-dilutive as of June 30, 2014 and 2013.  Common stock warrants totaled 254,218 as of June 30, 2014 and 2013.