Earnings Per Common Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings per Common Share

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock.  The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options, warrants, and restricted stock with proceeds used to purchase treasury shares at the average market price for the period.  The computations are as follows for the three months ended March 31, 2014 and 2013 (dollars in thousands, except share and per share data):

	For the Three Months Ended March 31,
	2014	2013
Net income	1,323	1,728
Weighted average number of shares outstanding used in the calculation of basic earnings per common share	9,288,400	7,513,101
Add dilutive effect of:
Stock options	21,769	14,312
Stock warrants	102,880	83,213
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share	9,413,049	7,610,626
Earnings per common share:
Basic	0.14	0.23
Diluted	0.14	0.23

Options to purchase 18,118 and 19,518 shares of common stock at a weighted average price of $18.19 and $18.15 per share were outstanding at March 31, 2014 and 2013, respectively, but were not included in the computation of diluted earnings per common share because the exercise prices of the options were greater than the average market price of the common shares.