Earnings (Loss) Per Share of Common Stock

9 Months Ended

Sep. 30, 2014

Earnings (Loss) Per Share of Common Stock

Earnings (Loss) Per Share of Common Stock

NOTE (2) – 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 Company’s formerly outstanding Series F Non-cumulative Voting Preferred Stock and Series G Non-Voting Preferred Stock, which are both included as participating securities in the table below.  The participating securities are entitled to share in common stock dividends on an as-converted basis.  There were no participating securities in 2014.

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, 2014 and 2013:

	For the three months ended September 30,				For the nine months ended September 30,
	2014		2013		2014		2013
	(Dollars in thousands, except per share)
Basic
Net income (loss)	$	765	$	584	$	1,813	$	(260)
Less: Preferred stock dividends and accretion	-		(127)		-		(779)
Less: Net (income) loss attributable to participating securities	-		(283)		-		465
Income (loss) available to common stockholders	$	765	$	174	$	1,813	$	(574)
Weighted average common shares outstanding	20,247,159		3,755,695		20,238,679		2,536,913
Earnings (loss) per common share - basic	$	0.04	$	0.05	$	0.09	$	(0.23)
Diluted
Net income (loss)	$	765	$	584	$	1,813	$	(260)
Less: Preferred stock dividends and accretion	-		(127)		-		(779)
Less: Net (income) loss attributable to participating securities	-		(283)		-		465
Income (loss) available to common stockholders	$	765	$	174	$	1,813	$	(574)
Weighted average common shares outstanding	20,247,159		3,755,695		20,238,679		2,536,913
Add: dilutive effects of assumed exercises of stock options	-		-		-		-
Weighted average common shares - fully dilutive	20,247,159		3,755,695		20,238,679		2,536,913
Earnings (loss) per common share - diluted	$	0.04	$	0.05	$	0.09	$	(0.23)

Stock options for 93,750 shares of common stock for the three and nine months ended September 30, 2014 and 148,750 shares of common stock for the three and nine months ended September 30, 2013 were not considered in computing diluted earnings (loss) per common share because they were anti-dilutive.