Earnings Per Share ("EPS")

3 Months Ended

Mar. 31, 2015

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. At both March 31, 2015 and 2014, there were 87,436 options,  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. The Company has not granted any stock options since 2007 and all options outstanding at March 31, 2015 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
	March 31,
(dollars in thousands)	2015	2014
Net Income	$             1,821	$             1,721
Less: dividends paid and accrued on preferred stock	(23)	(50)
Net income available to common shareholders	$             1,798	$             1,671
Average number of common shares outstanding	4,694,460	4,642,064
Effect of dilutive options	-	16,465
Average number of shares used to calculate diluted EPS	4,694,460	4,658,529