EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the nine months ended September 30, 2014 includes the weighted average of common shares outstanding.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities.  The calculation of diluted earnings per share for the nine months ended September 30, 2014 does not include options to purchase 1,006,000 shares due to their anti-dilutive effect.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the nine months ended September 30, 2014 and 2013: 

	2014		2013
Basic Earnings per Share
Numerator:
Net income available to common shareholders	$	5,933,877	$	5,304,660
Denominator:
Weighted-average shares outstanding	23,077,914		17,402,501
Basic earnings per share	$	0.26	$	0.30
Diluted Earnings per Share
Numerator:
Net income available to common shareholders	$	5,933,877	$	5,304,660
Denominator:
Weighted-average shares outstanding	23,077,914		17,402,501
Effect of dilutive securities
Stock options and warrants	1,116,993		1,039,925
Preferred stock	630,419		1,323,837
Diluted weighted-average shares outstanding	24,825,326		19,766,263
Diluted earnings per share	$	0.24	$	0.27