Net Income Per Common Share

9 Months Ended

Sep. 30, 2015

Net Income Per Common Share

Net Income Per Common Share

Note 8 – Net Income Per Common Share

The Company determines basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by dividing net income plus interest on convertible preferred stock by the weighted average number of shares outstanding increased by both the number of shares that would be issued assuming the exercise of stock options and convertible preferred stock. At September 30, 2015 and 2014, stock options to purchase 509,899 and 518,670shares at anaverage price of $11.59 and $8.05, respectively,were outstanding.  For the three and nine months ended September 30, 2015 and 2014, the dilutive effect of stock options was 118,526and 214,075 shares, respectively.  For the three and nine months ended September 30, 2015 and 2014, the dilutive effect of convertible preferred stock was 489,625and 0 shares, respectively.