Net Income per Share

9 Months Ended

Sep. 30, 2014

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 September 30,				For the nine months ended September 30,
(In thousands, except per share amounts)	2014		2013		2014		2013
Net income	$	1,886	$	1,302	$	4,707	$	3,848
Less: Preferred stock dividends and discount accretion		-		119		-		988
Income available to common shareholders	$	1,886	$	1,183	$	4,707	$	2,860
Weighted average common shares outstanding - Basic		7,847		7,545		7,680		7,542
Plus: Potential dilutive common stock equivalents		99		277		85		325
Weighted average common shares outstanding - Diluted		7,946		7,822		7,765		7,867
Net income per common share - Basic	$	0.24	$	0.16	$	0.61	$	0.38
Net income per common share - Diluted		0.24		0.15		0.61		0.36
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive		120		282		115		383

The "potential dilutive common stock equivalents" shown in the table above for September 30, 2013 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 repurchased on August 28, 2013 for a price of  $2.7 million utilizing the Treasury Stock Method for the period outstanding.