11. Net Income Per Common Share

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

11. 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 three months ended March 31, 2013 and 2012 there were 235,115 and 291,648 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 three months ended March 31, 2013 and 2012 follows:

	Three months ended
	March 31,
	2013		2012
Weighted average number of shares outstanding		3,840,899		3,771,109
Effect of dilutive securities, common share equivalents		73,507		-
Weighted average number of shares outstanding,
used for computing diluted earnings per share		3,914,406		3,771,109