4. EARNINGS PER SHARE COMPUTATION

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

4. EARNINGS PER SHARE COMPUTATION

Basic earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period (9,292,639 and 9,544,014 shares for the three-month and nine-month periods ended September 30, 2012, and 9,858,878 and 9,57,019 for the three-month and nine-month periods ended September 30, 2011). Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock. Diluted earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period plus the dilutive effect of stock based awards. There were 4,866 and 9,468, respectively, dilutive shares for the three-month and nine-month periods ended September 30, 2012 and 2,938 and 7,979, respectively, dilutive shares for the three-month and nine-month periods ended September 30, 2011. The stock options outstanding of 330,195 at September 30, 2012 and 359,569 at September 30, 2011 were considered anti-dilutive. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented.