10. Net Income Per Common Share

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

10. 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 nine months and three months ended September 30, 2013, the inclusion of 16,120 and 28,159 options in the computation of diluted earnings per share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per common has not been adjusted for the effect of such options.

The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2013		2012		2013		2012
Weighted average number of shares outstanding		3,811,243		3,824,461		3,826,510		3,794,979
Effect of dilutive securities, common share equivalents		76,597		111,706		76,917		89,193
Weighted average number of shares outstanding,
used for computing diluted earnings per share		3,887,840		3,936,167		3,903,427		3,884,172