EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2014

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, 2014 or September 30, 2013 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,
	2014		2013		2014		2013
Numerator:
Net earnings	$	1,507	$	7,380	$	7,075	$	8,511
Less Dividends declared:
Class A		131		131		391		391
Class B		679		650		1,986		1,925
Undistributed earnings	$	697	$	6,599	$	4,698	$	6,195
Undistributed earnings allocation - basic and diluted:
Class A undistributed earnings	$	124	$	1,209	$	847	$	1,137
Class B undistributed earnings		573		5,390		3,851		5,058
Total undistributed earnings	$	697	$	6,599	$	4,698	$	6,195
Net earnings allocation - basic and diluted:
Class A net earnings	$	255	$	1,340	$	1,238	$	1,528
Class B net earnings		1,252		6,040		5,837	$	6,983
Net earnings	$	1,507	$	7,380	$	7,075	$	8,511
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		9,590,586		9,228,731		9,420,111		9,221,032
Earnings per share:
Class A common share - basic and diluted	$	0.12	$	0.62	$	0.57	$	0.70
Class B common share - basic and diluted	$	0.13	$	0.65	$	0.62	$	0.76