4. EARNINGS PER SHARE COMPUTATION

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE COMPUTATION

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 (9,209,719 shares and 9,823,269 shares for the three-month periods ended March 31, 2013 and 2012, respectively). 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 (10,898 shares for the three-month period ended March 31, 2013 and 10,281 shares for the three-month period ended March 31, 2012). Earnings per share is retroactively adjusted for stock dividends and stock splits for all periods presented. Stock options for 278,850 shares and 355,527 shares of common stock were not considered in computing diluted earnings per common share for the three-month periods ended March 31, 2013 and 2012, respectively, because they were antidilutive.