EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

3. EARNINGS PER SHARE

Earnings Per Share - Basic earnings per share is determined by dividing net income for the period by the weighted average number of common shares.  Diluted earnings per share considers the potential effects of the exercise of the outstanding stock options under the Company’s stock option plans.

The following reflects earnings per share calculations for basic and diluted methods:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Net income available to common shareholders	$	624,977	$	760,075	$	1,464,767	$	1,772,523
Basic average shares outstanding		1,795,133		1,869,499		1,794,883		1,873,692
Diluted potential common shares:
Stock option equivalents		11,347		299		8,156		284
Diluted average shares outstanding		1,806,480		1,869,798		1,803,039		1,873,976
Basic earnings per share	$	0.35	$	0.41	$	0.82	$	0.95
Diluted earnings per share	$	0.35	$	0.41	$	0.81	$	0.95

Stock options for 100,335 shares of common stock were not considered in computing diluted earnings per share for the three and six month periods ending June 30, 2013, because they were anti-dilutive.