Earnings Per Share ("EPS")

9 Months Ended

Sep. 30, 2014

Earnings Per Share ("EPS") [Abstract]

Earnings Per Share ("EPS")

NOTE 5 - EARNINGS PER 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, 2014 and 2013, there were 87,435 and 101,549 options, respectively, which were excluded from the calculation as their effect would be anti-dilutive, because the exercise price of the options were greater than the average market price of the common shares.

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,
(dollars in thousands)	2014	2013	2014	2013
Net Income	$               1,889	$              1,703	$             4,945	$             5,007
Less: dividends paid and accrued on preferred stock	(50)	(50)	(150)	(150)
Net income available to common shareholders	$               1,839	$              1,653	$             4,795	$             4,857
Average number of common shares outstanding	4,652,481	2,997,401	4,648,843	3,016,793
Effect of dilutive options	17,303	24,981	16,604	25,295
Average number of shares used to calculate diluted EPS	4,669,784	3,022,382	4,665,447	3,042,088