Earnings per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

6. Earnings per Share

Basic earnings per share (“EPS”) computations are calculated utilizing the weighted average number of shares of common stock outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of shares of common stock outstanding adjusted for the effect of dilutive common stock equivalents.

The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Numerator:
Net income	$	4,855,000	$	5,673,000	$	16,542,000	$	18,679,000
Denominator:
Weighted average shares of common stock outstanding		12,457,438		13,884,293		12,877,297		13,852,155
Effect of dilutive common stock equivalents		111,949		19,119		98,374		103,062
Weighted average shares of common stock outstanding		12,569,387		13,903,412		12,975,671		13,955,217
EPS:
Basic	$	0.39	$	0.41	$	1.28	$	1.35
Diluted	$	0.39	$	0.41	$	1.27	$	1.34

The calculation of diluted earnings per share excluded 67,764 options outstanding for the three and nine months ended September 30, 2014 that could potentially dilute base earnings per share in the future. No options were excluded from the calculation for the three and nine months ended September 30, 2013.