19. Net Income Per Common Share

12 Months Ended

Dec. 31, 2012

Earnings per common share:

19. Net Income Per Common Share

Basic net earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options. The computation of diluted earnings per share excludes those options with an exercise price in excess of the average market price of the Company’s common shares during the periods presented.

The computation of diluted earnings per share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the years ended December 31, 2012 and 2011 there were 225,115 and 269,432 options, respectively, with an exercise price below the average market price of the Company’s Common Stock during the period.

The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share for the years ended December 31, 2012 and 2011 follows:

	Year ended
	December 31,
	2012		2011
Weighted average number of shares outstanding		3,806,697		3,837,190
Effect of dilutive securities, common share equivalents		65,063		83,594
Weighted average number of shares outstanding,
used for computing diluted earnings per share		3,871,760		3,920,784