Income per Common Share

9 Months Ended

Sep. 30, 2015

5.	Income per Common Share:

Basic income per common share is computed using the weighted-average number of common shares outstanding during each period. Diluted income per common share reflects the effect of the Company’s outstanding convertible preferred stock and stock options except where such items would be antidilutive.

A reconciliation of weighted-average shares used for the basic computation and that used for the diluted computation is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014

Weighted-average shares for basic		4,861,697		4,857,083		4,860,820		4,853,985
Dilutive effect of convertible preferred stock and stock options		71,085		74,152		73,427		75,074

Weighted-average shares for diluted		4,932,782		4,931,235		4,934,247		4,929,059

Options to purchase 66,330 and 60,838 shares of common stock were outstanding at September 30, 2015 and 2014, respectively. For the three month periods ended September 30, 2015 and 2014, 7,085 and 10,152 of outstanding options to purchase common shares were included, respectively, in the computation of diluted earnings per share (EPS). For the nine month period ended September 30, 2015 and 2014, 9,427 and 11,074 of outstanding options to purchase common stock were included in the computation of diluted earnings per share (EPS).

Shares of preferred stock convertible into 64,000 shares of common stock were outstanding for the three and nine-month periods ended September 30, 2015 and 2014. For the three and nine-month periods ended September 30, 2015 and 2014, the 64,000 shares were included in the calculation of diluted earnings per share.