Earnings (Loss) Per Share of Common Stock

9 Months Ended

Sep. 30, 2013

Earnings (Loss) Per Share of Common Stock

Earnings (Loss) Per Share of Common Stock

NOTE (3) – Earnings (Loss) Per Share of Common Stock

Basic earnings (loss) per share of common stock is computed by dividing income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the period.  Diluted earnings (loss) per share of common stock is computed by dividing income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the period, increased for the dilutive effect of common stock equivalents, except for the Common Stock Equivalents (defined in Note 2) and Series G Non-Voting Preferred Stock, which are both described as participating securities in the table below.  The participating securities are entitled to share in common stock dividends on an as-converted basis.

The following table shows how the Company computed basic and diluted earnings (loss) per share of common stock for the three and nine months ended September 30, 2013 and 2012:

	For the three months ended September 30,						For the nine months ended September 30,
	2013			2012			2013			2012
	(Dollars in thousands, except per share)
Basic
Net income (loss)	$	584		$	(613	)	$	(260	)	$	1,238
Less: Preferred stock dividends and accretion	(127		)	(287		)	(779		)	(858		)
Less: Net income (loss) attributable to participating securities	(283		)	-			465			-
Income (loss) available to common stockholders	$	174		$	(900	)	$	(574	)	$	380
Weighted average common shares outstanding	3,755,695			1,858,697			2,536,913			1,782,887
Earnings (loss) per common share - basic	$	0.05		$	(0.48	)	$	(0.23	)	$	0.21
Diluted
Net income (loss)	$	584		$	(613	)	$	(260	)	$	1,238
Less: Preferred stock dividends and accretion	(127		)	(287		)	(779		)	(858		)
Less: Net income (loss) attributable to participating securities	(283		)	-			465			-
Income (loss) available to common stockholders	$	174		$	(900	)	$	(574	)	$	380
Weighted average common shares outstanding	3,755,695			1,858,697			2,536,913			1,782,887
Add: dilutive effects of assumed exercises of stock options	-			-			-			-
Weighted average common shares - fully diluted	3,755,695			1,858,697			2,536,913			1,782,887
Earnings (loss) per common share - diluted	$	0.05		$	(0.48	)	$	(0.23	)	$	0.21

Stock options for 148,750 shares of common stock for the three and nine months ended September 30, 2013 and 227,075 shares of common stock for the three and nine months ended September 30, 2012 were not considered in computing diluted loss per common share because they were anti-dilutive.