EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2013

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

2.   EARNINGS PER SHARE

The Company utilizes the two-class method to report its earnings per share.  The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and participation rights in undistributed earnings.  The Company’s Certificate of Incorporation, as amended, states that Class B common shares are entitled to dividends at least 5% greater than dividends paid to Class A common shares, resulting in the two-class method of computing earnings per share.  In computing earnings per share, the Company has allocated dividends declared to Class A and Class B based on amounts actually declared for each class of stock and 5% more of the undistributed earnings have been allocated to Class B shares than to the Class A shares on a per share basis.  Basic earnings per common share are computed by dividing net earnings by the weighted-average number of common shares outstanding during the period.  Diluted earnings per common share, for each class of common stock, are computed by dividing net earnings by the weighted-average number of common shares and potential common shares outstanding during the period. There were no potential common shares outstanding during the three or nine months ended September 30, 2013 or 2012 which would have had a dilutive effect on earnings per share.

The earnings and weighted-average shares outstanding used in the computation of basic and diluted earnings per share are as follows (dollars in thousands, except share and per share data):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Numerator:
Net earnings	$	7,836	$	2,491	$	9,689	$	4,804
Less Dividends:
Class A		131		130		391		392
Class B		650		681		1,925		2,036
Undistributed earnings	$	7,055	$	1,680	$	7,373	$	2,376
Undistributed earnings allocation - basic and diluted:
Class A undistributed earnings	$	1,293	$	296	$	1,353	$	419
Class B undistributed earnings		5,762		1,384		6,020		1,957
Total undistributed earnings	$	7,055	$	1,680	$	7,373	$	2,376
Net earnings allocation - basic and diluted:
Class A allocated earnings	$	1,424	$	426	$	1,744	$	811
Class B allocated earnings		6,412		2,065		7,945		3,993
Net earnings	$	7,836	$	2,491	$	9,689	$	4,804
Denominator:
Weighted-average shares outstanding:
Class A common share - basic and diluted		2,174,912		2,174,912		2,174,912		2,174,912
Class B common share - basic and diluted		9,228,731		9,697,097		9,221,032		9,668,785
Earnings per share:
Class A common share - basic and diluted	$	0.65	$	0.20	$	0.80	$	0.37
Class B common share - basic and diluted	$	0.69	$	0.21	$	0.86	$	0.41