Note 6 - Shareholders' Equity, Other Comprehensive Income and Earnings Per Common Share

6 Months Ended

Jun. 30, 2014

Other Comprehensive Income And Earnings Per Common Share Disclosure [Abstract]

Other Comprehensive Income And Earnings Per Common Share Disclosure [Text Block]

NOTE 6: Shareholders’ Equity and Earnings Per Common Share

Accumulated Other Comprehensive Income (Loss)

The following table presents the cumulative balances of the components of accumulated other comprehensive income (loss), net of deferred tax of $1.66 million and $163,000 as of June 30, 2014 and December 31, 2013, respectively.

(Dollars in thousands)	June 30, 2014			December 31, 2013
Net unrealized gains on securities	$	3,591		$	261
Net unrecognized loss on cash flow hedges		(150	)		(202	)
Net unrecognized losses on defined benefit plan		(313	)		(325	)
Total accumulated other comprehensive income (loss)	$	3,128		$	(266	)

Common Shares

During the first six months of 2014, the Corporation repurchased 225 shares of its common stock from employees to satisfy tax withholding obligations arising upon the vesting of restricted shares. There were no stock repurchases during the first six months of 2013.

Earnings Per Common Share

The components of the Corporation’s earnings per common share calculations are as follows:

(Dollars in thousands)	Three Months Ended June 30,
	2014		2013
Net income	$	3,742	$	4,178
Weighted average number of common shares used in earnings per common share – basic		3,405,245		3,276,039
Effect of dilutive securities:
Stock option awards and Warrant		37,223		137,013
Weighted average number of common shares used in earnings per common share – assuming dilution		3,442,468		3,413,052

(Dollars in thousands)	Six Months Ended June 30,
	2014		2013
Net income available to common shareholders	$	6,635	$	8,184
Weighted average number of common shares used in earnings per common share – basic		3,403,042		3,271,376
Effect of dilutive securities:
Stock option awards and Warrant		64,012		120,789
Weighted average number of common shares used in earnings per common share – assuming dilution		3,467,054		3,392,165

Potential common shares that may be issued by the Corporation for its stock option awards and Warrant are determined using the treasury stock method. Approximately 156,110 and 500 shares issuable upon exercise of options were not included in computing diluted earnings per common share for the three months ended June 30, 2014 and 2013, respectively, and approximately 136,130 and 35,100 shares issuable upon exercise of options were not included in computing earnings per common share for the six months ended June 30, 2014 and 2013, respectively, because they were anti-dilutive.