4. EARNINGS PER SHARE COMPUTATION

6 Months Ended

Jun. 30, 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 (8,893,367 and 9,050,669 shares for the three-month and six-month periods ended June 30, 2013, and 9,518,897 and 9,671,083 for the three-month and six-month periods ended June 30, 2012). 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 4,758 and 3,983, respectively, dilutive shares for the three-month and six-month periods ended June 30, 2013 and 13,306 and 11,794, respectively, dilutive shares for the three-month and six-month periods ended June 30, 2012. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented.