4. Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 4. EARNINGS PER SHARE

The computations of basic and diluted earnings per share follow:

	For the Three Months Ended March 31,
	2014							2013
				Common							Common
Dollars in thousands,	Income			Shares		Per		Income			Shares		Per
except per share amounts	(Numerator)			(Denominator)		Share		(Numerator)			(Denominator)		Share
Net income	$	2,389						$	1,793
Less preferred stock dividends		(193	)						(194	)
Basic EPS	$	2,196			7,453,370	$	0.29	$	1,599			7,432,254	$	0.22
Effect of dilutive securities:
Stock options					9,762							7,087
Series 2011 convertible
preferred stock		119			1,491,250				120			1,500,000
Series 2009 convertible
preferred stock		74			674,545				74			674,545
Diluted EPS	$	2,389		$	9,628,927	$	0.25	$	1,793		$	9,613,886	$	0.19

Stock option grants and the conversion of preferred stock are disregarded in this computation if they are determined to be anti-dilutive. Our anti-dilutive stock options at March 31, 2014 and 2013 totaled 143,000 shares and 170,500 shares, respectively.