12. EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if options or other contracts to issue common stock were exercised and converted into common stock. Stock options for 204,013 and 214,302 shares of common stock were not considered in computing diluted earnings per common share for the three months ended June 30, 2014 and 2013, respectively, because they were antidilutive. 

There was no difference in the numerator used in the calculation of basic earnings per share and diluted earnings per share for the three months ended June 30, 2014 and 2013 (in thousands except earnings per share data):

	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Basic
Net income	$	1,260	$	894	$	2,179	$	2,155
Weighted average common shares outstanding		6,836		6,835		6,836		6,835
Basic earnings per common share	$	0.18	$	0.13	$	0.32	$	0.32
Diluted
Net income	$	1,260	$	894	$	2,179	$	2,155
Weighted average common shares outstanding		6,836		6,835		6,836		6,835
Dilutive effect of outstanding stock options		54		18		53		15
Average shares and dilutive potential common shares		6,890		6,853		6,889		6,850
Diluted earnings per common share	$	0.18	$	0.13	$	0.32	$	0.31