EARNINGS PER COMMON SHARE (EPS)

9 Months Ended

Sep. 30, 2013

EARNINGS PER COMMON SHARE (EPS) [Abstract]

EARNINGS PER COMMON SHARE (EPS)

5. EARNINGS PER COMMON SHARE (EPS)

Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. As of September 30, 2013 and 2012, there were 101,549 and 187,367 shares, respectively, excluded from the diluted net income per share computation because the exercise price of the stock options were greater than the market price, and thus were anti-dilutive. Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2013	2012	2013	2012
Net Income	$          1,702,841	$        1,472,941	$        5,006,681	$       3,519,346
Less: dividends paid and accrued on preferred stock	(50,000)	(50,000)	(150,000)	(150,000)
Net income available to common shareholders	$          1,652,841	$        1,422,941	$        4,856,681	$       3,369,346
Average number of common shares outstanding	2,997,401	3,044,556	3,016,793	3,042,645
Effect of dilutive options	24,981	8,693	25,295	13,026
Average number of shares used to calculate diluted EPS	3,022,382	3,053,249	3,042,088	3,055,671