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OUTSTANDING SHARES AND EARNINGS PER SHARE
 9 Months Ended
Sep. 30, 2014
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]  
OUTSTANDING SHARES AND EARNINGS PER SHARE
4.
OUTSTANDING SHARES AND EARNINGS PER SHARE

On January 23, 2014, the Board of Directors of the Company declared a 3% stock dividend payable as of March 31, 2014.  All income per share amounts have been adjusted to give retroactive effect to stock dividends.

Earnings Per Share (EPS)

Basic EPS includes no dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the respective period.  Quarter-to-date diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding plus dilutive shares for the quarter.  Year-to-date diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding plus average dilutive shares year-to-date.  Diluted shares include all common stock equivalents (“in-the-money” stock options, unvested restricted stock, stock units, warrants and rights, convertible bonds and preferred stock), which reflects the potential dilution of securities that could share in the earnings of the Company.

The following table presents a reconciliation of basic and diluted EPS for the three-month and nine-month period ended September 30, 2014 and 2013.

  
Three months ended
  
Nine Months ended
 
  
September 30,
  
September 30,
 
  
2014
  
2013
  
2014
  
2013
 
Basic earnings per share:
        
Net income
 
$
1,570
  
$
1,373
  
$
4,273
  
$
4,178
 
Preferred stock dividend
 
$
(33
)
 
$
(162
)
 
$
(97
)
 
$
(534
)
Net income available to common stockholders
 
$
1,537
  
$
1,211
  
$
4,176
  
$
3,644
 
                 
Weighted average common shares outstanding
  
9,729,443
   
9,701,098
   
9,724,986
   
9,696,042
 
Basic EPS
 
$
0.16
  
$
0.12
  
$
0.43
  
$
0.38
 
                 
Diluted earnings per share:
                
Net income
 
$
1,570
  
$
1,373
  
$
4,273
  
$
4,178
 
Preferred stock dividend
 
$
(33
)
 
$
(162
)
 
$
(97
)
 
$
(534
)
Net income available to common stockholders
 
$
1,537
  
$
1,211
  
$
4,176
  
$
3,644
 
                 
Weighted average common shares outstanding
  
9,729,443
   
9,701,098
   
9,724,986
   
9,696,042
 
                 
Effect of dilutive shares
  
52,440
   
38,862
   
49,534
   
34,897
 
                 
Adjusted weighted average common shares outstanding
  
9,781,883
   
9,739,960
   
9,774,520
   
9,730,939
 
Diluted EPS
 
$
0.16
  
$
0.12
  
$
0.43
  
$
0.37
 

Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 220,467 shares and 310,847 shares for the three-month periods ended September 30, 2014 and 2013, respectively.  Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 236,137 shares and 322,949 shares for the nine-month periods ended September 30, 2014 and 2013, respectively.  There were no non-vested shares of restricted stock not included in the computation of diluted earnings per share because they would have an anti-dilutive effect for the three-month periods ended September 30, 2014 and 2013.  Non-vested shares of restricted stock that were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 8,205 shares and 2,852 shares for the nine-month periods ended September 30, 2014 and 2013, respectively.