OUTSTANDING SHARES AND EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2015

OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]

OUTSTANDING SHARES AND EARNINGS PER SHARE

4.           OUTSTANDING SHARES AND EARNINGS PER SHARE

On January 22, 2015, the Board of Directors of the Company declared a 4% stock dividend payable as of March 31, 2015.  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.  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.  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 period ended March 31, 2015 and 2014.

	Three months ended
	March 31,
	2015			2014
Basic earnings per share:
Net income	$	1,517		$	1,364
Preferred stock dividend	$	(32	)	$	(32	)
Net income available to common stockholders	$	1,485		$	1,332
Weighted average common shares outstanding		10,135,245			10,106,062
Basic EPS	$	0.15		$	0.13
Diluted earnings per share:
Net income	$	1,517		$	1,364
Preferred stock dividend	$	(32	)	$	(32	)
Net income available to common stockholders	$	1,485		$	1,332
Weighted average common shares outstanding		10,135,245			10,106,062
Effect of dilutive shares		61,596			52,882
Adjusted weighted average common shares outstanding		10,196,841			10,158,944
Diluted EPS	$	0.15		$	0.13

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 183,437 shares and 253,865 shares for the three-month periods ended March 31, 2015 and 2014, respectively.  Non-vested shares of restricted stock not included in the computation of diluted earnings per share because they would have an anti-dilutive effect amounted to zero shares and 25,886 shares for the three-month periods ended March 31, 2015 and 2014, respectively.