Earnings Per Common Share (EPS)

6 Months Ended

Jun. 30, 2013

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS)

4. Earnings Per Common Share (EPS)

Basic EPS is calculated using net income divided by the weighted average of common shares outstanding.  Diluted EPS is similar to Basic EPS except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if the potential dilutive common shares, such as those shares subject to options, had been issued.

Shares used in the calculation of diluted EPS are summarized below:

	Three Months Ended
	June 30, 2013	June 30, 2012
Weighted average common shares outstanding	2,007,623	1,986,364
Dilutive effect of stock options	4,929	4,947
Weighted average common and common equivalent shares outstanding	2,012,552	1,991,311

	Six Months Ended
	June 30, 2013	June 30, 2012
Weighted average common shares outstanding	2,004,108	1,985,530
Dilutive effect of stock options	3,616	4,599
Weighted average common and common equivalent shares outstanding	2,007,724	1,990,129

Options to purchase 3,750 shares of common stock with a weighted average price of $12.56 were outstanding during the six months ended June 30, 2013, but were excluded from the computation of common share equivalents because they were anti-dilutive.  For six months ended June 30, 2012, options to purchase 5,000 shares of common stock with a weighted average price of $8.08 were outstanding but were excluded from the computation of common share equivalents because they were anti-dilutive.  There were no anti-dilutive options outstanding during the quarters ended June 30, 2013 and 2012.