3. Earnings per Common Share

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 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 March 31, as adjusted for the cash dividends declared on the preferred stock:

For the First Quarter Ended March 31,	2013		2012
Net income, as reported	$	1,041,778	$	964,849
Less: dividends to preferred shareholders (1)		20,313		46,875
Net income available to common shareholders	$	1,021,465	$	917,974
Weighted average number of common shares
used in calculating earnings per share		4,816,588		4,735,857
Earnings per common share	$	0.21	$	0.19

(1) Reflects a reduction in the dividend rate paid on the preferred stock, effective January 1, 2013, from a fixed rate of 7.50% to a quarterly adjustable rate of 3.25%.