Note 4 - Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 4. EARNINGS PER SHARE

Basic Earnings Per Share (EPS) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period, respectively. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that subsequently shared in the earnings of the entity.

The following is a computation of basic and diluted EPS for the three months ended March 31, 2014, and 2013:

(Dollars in thousands, except per share data)	For the three months ended March 31,
Earnings Per Share	2014			2013
NUMERATORS:
Net income	$	565	$	2,040
Less preferred stock dividends		50		50
Net income available to common shareholders	$	515	$	1,990
DENOMINATORS:
Weighted average number of common shares outstanding - basic		13,942		15,686
Effect of potentially dilutive common shares (1)		45		17
Weighted average number of common shares outstanding - diluted		13,987		15,703
EARNINGS PER COMMON SHARE:
Basic attributable to operations	$	0.04	$	0.13
Diluted attributable to operations	$	0.04	$	0.13
Anti-dilutive options not included in earnings per share calculation		123,437		122,337

(1) Represents the effects of the assumed exercise of stock options

On January 16, 2013, the Company announced that its Board of Directors had authorized the purchase of up to 1,000,000 or 6% of its outstanding shares over a twelve-month period. The stock repurchase plan authorized the Company to conduct open market purchases or privately negotiated transactions from time to time when, at management’s discretion, it was determined that market conditions and other factors warrant such purchases. Pursuant to the stock repurchase plan, the Company repurchased and subsequently retired 662,977 shares during the three months ended March 31, 2013. The company purchased and subsequently retired the full amount of shares authorized under the plan as of December 31, 2013

On August 21, 2013, the Company announced that its Board of Directors had authorized the purchase of up to 1,000,000 or 7% of its outstanding shares over a twelve-month period. The stock repurchase plan authorizes the Company to conduct open market purchases or privately negotiated transactions from time to time when, at management’s discretion, it was determined that market conditions and other factors warrant such purchases. Pursuant to the stock repurchase plan, the Company purchased and subsequently retired the full amount of shares authorized under the plan as of December 31, 2013.

On March 20, 2014, the Company announced that its Board of Directors had authorized the purchase of up to 700,000 or 5% of its outstanding shares over a twelve-month period. The stock repurchase plan authorizes the Company to conduct open market purchases or privately negotiated transactions from time to time when, at management’s discretion, it was determined that market conditions and other factors warrant such purchases. Pursuant to the stock repurchase plan, the Company repurchased and subsequently retired 440,815 common shares during the three months ended March 31, 2014. In April of 2014 the Company repurchased and subsequently retired 80,915 additional shares.

The decrease in weighted average shares from the stock repurchases positively contributed to increases in earnings per common share, and return on common equity.