Earnings Per Common Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the reporting periods. Diluted net income available to common shareholders per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The numerators of the basic net income per common share computations are the same as the numerators of the diluted net income per common share computations for all the periods presented. Weighted average shares outstanding for the three months ended March 31, 2014 excludes 163,783 shares of unvested restricted stock. Weighted average shares outstanding for the three months ended March 31, 2013 excludes 175,873 shares of unvested restricted stock. A reconciliation of the denominator of the basic net income per common share computations to the denominator of the diluted net income per common share computations is as follows:

	Three Months Ended
	March 31,
	2014	2013
Basic EPS denominator:
Weighted average number of common shares outstanding	14,211,456	14,198,382
Dilutive potential common shares	57,997	6,126
Diluted EPS denominator	14,269,453	14,204,508

For the quarters ended March 31, 2014 and 2013, net income for determining net income per common share was reported as net income less the dividend on preferred stock. During the quarter ended March 31, 2014, there were 47,175 stock options that were not considered dilutive because the exercise prices exceeded the average market price per share. The non-dilutive options had exercise prices ranging from $20.37 to $57.21 per share for the three months ended March 31, 2014. During the quarter ended March 31, 2014, 106,966 shares of restricted stock were not considered dilutive because they were antidilutive under the treasury stock method or because performance and service criteria had not been met. During the three months ended March 31, 2013, there were 84,889 warrants and stock options that were not considered dilutive, and 187,196 shares of restricted stock that were not considered dilutive.

Effective May 28, 2013, the Company executed a one-for-three reverse stock split. All references to net income per share and weighted average shares outstanding have been adjusted for the effect of this reverse stock split.