Note 4 - Earnings Per Share

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2014 and 2013

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(Dollars in thousands, except per share data)	2014		2013		2014		2013
Earnings Per Share
NUMERATORS:
Net income	$	1,273	$	1,802	$	4,044	$	5,848
Less preferred stock dividends		50		50		150		150
Net income available to common shareholders	$	1,223	$	1,752	$	3,894	$	5,698
DENOMINATORS:
Weighted average number of common shares outstanding - basic		13,294		14,829		13,536		15,208
Effect of potentially dilutive common shares (1)		45		24		46		22
Weighted average number of common shares outstanding - diluted		13,339		14,853		13,582		15,230
EARNINGS PER COMMON SHARE:
Basic attributable to operations	$	0.09	$	0.12	$	0.29	$	0.37
Diluted attributable to operations	$	0.09	$	0.12	$	0.29	$	0.37
Anti-dilutive options not included in earnings per share calculation		103,411		116,837		110,575		126,837

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

On January 16, 2013, the Company announced that its Board of Directors 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 plan, the Company repurchased and subsequently retired 17,827 and 1,000,000 common shares during the three and nine months ended September 30, 2013, respectively.

On August 21, 2013, the Company announced that its Board of Directors 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 plan, the Company purchased and subsequently retired 513,668 common shares during the three months ended September 30, 2013. The remaining shares authorized under the plan were purchased and retired during the three months ended December 31, 2013.

On March 20, 2014, the Company announced that its Board of Directors 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 plan, the Company repurchased and subsequently retired 700,000 common shares during the six months ended June 30, 2014.

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