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Net Income per Share
 6 Months Ended
Jun. 30, 2013
Net Income per Share [Abstract]  
Net Income per Share

NOTE 3.  Net Income per Share

 

Basic net income per common share is calculated as net income available to common shareholders divided by the weighted average common shares outstanding during the reporting period.  Net income available to common shareholders is calculated as net income less accrued dividends and discount accretion related to preferred stock. 

 

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options and warrants, were issued during the reporting period utilizing the Treasury stock method.

 

The following is a reconciliation of the calculation of basic and diluted income per share.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30,

 

For the six months ended June 30,

(In thousands, except per share amounts)

 

2013

 

2012

 

2013

 

2012

Net income

 

$
1,347 

 

$
976 

 

$
2,546 

 

$
1,881 

Less: Preferred stock dividends and discount accretion

 

 
465 

 

 
401 

 

 
869 

 

 
797 

Income available to common shareholders

 

$
882 

 

$
575 

 

$
1,677 

 

$
1,084 

Weighted average common shares outstanding - Basic

 

 
7,544 

 

 
7,462 

 

 
7,541 

 

 
7,461 

Plus: Potential dilutive common stock equivalents

 

 
367 

 

 
322 

 

 
340 

 

 
327 

Weighted average common shares outstanding - Diluted

 

 
7,911 

 

 
7,784 

 

 
7,881 

 

 
7,788 

Net income per common share - Basic

 

$
0.12 

 

$
0.08 

 

$
0.22 

 

$
0.15 

Net income per common share - Diluted

 

 
0.11 

 

 
0.07 

 

 
0.21 

 

 
0.14 

Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive

 

 
396 

 

 
505 

 

 
387 

 

 
504 

 

The "potential dilutive common stock equivalents" shown in the table above includes the impact of 764,778 common stock warrants issued to the U.S. Department of Treasury under the Capital Purchase Program in December 2008, utilizing the Treasury stock method.  These warrants were dilutive for the three and six months ended June 30, 2013 and 2012.