Note 5 - Net Income Per Common Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

5.  Net Income Per Common Share

Basic net income per common share is determined by dividing net income available to common shareholders by the weighted average total number of common shares issued and outstanding.  Net income available to common shareholders represents net income adjusted for preferred stock dividends including dividends declared, accretion of discounts on preferred stock issuances, and cumulative dividends related to the current dividend period that have not been declared as of the end of the period.

Diluted net income per common share is determined by dividing net income available to common shareholders by the total weighted average number of common shares issued and outstanding plus amounts representing the dilutive effect of stock options outstanding and outstanding warrants. The effects of stock options and outstanding warrants are excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. Dilutive potential common shares are calculated using the treasury stock method.

Net income per common share computations were as follows for the periods indicated.

	Three Months Ended March 31,
(In thousands, except per share data)	2013		2012
Net income, basic and diluted	$	3,792	$	3,309
Less preferred stock dividends and discount accretion		485		478
Net income available to common shareholders, basic and diluted	$	3,307	$	2,831
Average common shares issued and outstanding, basic and diluted		7,470		7,447
Net income per common share, basic and diluted	$	.44	$	.38

Stock options for 22,049 and 24,049 shares of common stock were not included in the determination of diluted net income per common share for the three months ended March 31, 2013 and 2012, respectively, because they were antidilutive. There were 223,992 potential common shares associated with a warrant issued to the U.S. Treasury that were excluded from the computation of diluted net income per common share for 2012 because they were antidilutive. The Company repurchased the warrant from the Treasury during the third quarter of 2012.