Earnings Per Share

3 Months Ended

Mar. 31, 2014

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-month period ended March 31, 2014 and 2013 were as follows:

	Three months ended March 31,
	2014			2013
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	3,607,000		$	3,528,000
Preferred stock dividends	(1,104,000		)	(1,104,000		)
Net income available to common stockholders	$	2,503,000		$	2,424,000
Weighted average common shares outstanding	5,883,340			5,955,284
Basic earnings per common share	$	0.43		$	0.41
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	2,503,000		$	2,424,000
Effect of assumed preferred stock conversion	—			—
Net income applicable to diluted earnings per share	$	2,503,000		$	2,424,000
Weighted average common shares outstanding	5,883,340			5,955,284
Dilutive potential common shares:
Assumed conversion of stock options	—			1,284
Restricted stock awarded	8,017			10,015
Assumed conversion of preferred stock	—			—
Dilutive potential common shares	8,017			11,299
Diluted weighted average common shares outstanding	5,891,357			5,966,583
Diluted earnings per common share	$	0.43		$	0.41

The following shares were not considered in computing diluted earnings per share for the three-month periods ended March 31, 2014 and 2013 because they were anti-dilutive:

	Three months ended March 31,
	2014	2013
Stock options to purchase shares of common stock	128,750	108,125
Average dilutive potential common shares associated with convertible preferred stock	2,494,790	2,494,801