3. Earnings per Common Share

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

3. Earnings per Common Share

Earnings per common share amounts are computed based on the weighted average number of shares of common stock issued during the period (retroactively adjusted for stock splits and stock dividends), including Dividend Reinvestment Plan shares issuable upon reinvestment of dividends declared, and reduced for shares held in treasury.

The following table illustrates the calculation for the periods ended September 30, as adjusted for the cash dividends declared on the preferred stock:

For The Quarter Ended September 30,	2012		2011
Net income, as reported	$	1,267,351	$	820,624
Less: dividends to preferred shareholders		46,875		46,875
Net income available to common shareholders	$	1,220,476	$	773,749
Weighted average number of common shares
used in calculating earnings per share		4,781,877		4,687,718
Earnings per common share	$	0.26	$	0.17

For the Nine Months Ended September 30,		2012		2011
Net income, as reported	$	3,253,392	$	2,636,811
Less: dividends to preferred shareholders		140,625		140,625
Net income available to common shareholders	$	3,112,767	$	2,496,186
Weighted average number of common shares
used in calculating earnings per share		4,759,383		4,662,261
Earnings per common share	$	0.65	$	0.54