4. EARNINGS PER SHARE COMPUTATION

9 Months Ended

Sep. 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 (8,808,585 and 8,969,088 shares for the three-month and nine-month periods ended September 30, 2013, and 9,292,639 and 9,544,014 for the three-month and nine-month periods ended September 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 8,702 and 5,715, respectively, dilutive shares for the three-month and nine-month periods ended September 30, 2013 and 4,866 and 9,468, respectively, dilutive shares for the three-month and nine-month periods ended September 30, 2012. There were 217,247 and 277,923, respectively, stock options that were excluded from the calculation as they were considered antidilutive for the three-month and nine-month periods ended September 30, 2013 and 320,195 and 322,085, respectively, antidilutive shares for the three-month and nine-month periods ended September 30, 2012. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented.