Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding.  Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the assumed conversion of the Company’s convertible preferred stock and the Company’s stock options, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the three and nine-month periods ended September 30, 2013 and 2012 were as follows:

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	3,910,000		$	3,647,000		$	11,103,000		$	10,516,000
Preferred stock dividends	(1,104,000		)	(1,104,000		)	(3,313,000		)	(3,148,000		)
Net income available to common stockholders	$	2,806,000		$	2,543,000		$	7,790,000		$	7,368,000
Weighted average common shares outstanding	5,935,383			6,030,053			5,947,476			6,025,255
Basic earnings per common share	$	0.47		$	0.42		$	1.31		$	1.22
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	2,806,000		$	2,543,000		$	7,790,000		$	7,368,000
Effect of assumed preferred stock conversion	—						—			—
Net income applicable to diluted earnings per share	$	2,806,000		$	2,543,000		$	7,790,000		$	7,368,000
Weighted average common shares outstanding	5,935,383			6,030,053			5,947,476			6,025,255
Dilutive potential common shares:
Assumed conversion of stock options	2,151			10,954			2,864			5,355
Restricted stock awarded	9,329			135			9,329			275
Assumed conversion of preferred stock	—			—			—			—
Dilutive potential common shares	11,480			11,089			12,193			5,630
Diluted weighted average common shares outstanding	5,946,863			6,041,142			5,959,669			6,030,885
Diluted earnings per common share	$	0.47		$	0.42		$	1.31		$	1.22

The following shares were not considered in computing diluted earnings per share for the three and nine-month periods ended September 30, 2013 and 2012 because they were anti-dilutive:

	Three months ended September 30,		Nine months ended September 30,
	2013	2012	2013	2012
Stock options to purchase shares of common stock	130,500	108,125	130,500	108,125
Average dilutive potential common shares associated with convertible preferred stock	2,494,801	2,490,079	2,494,801	2,222,967