Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

Earnings Per Share

Note 9 – Earnings Per Share

Basic earnings per share excludes dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common shares in treasury.  Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that would then share in earnings and excludes common shares in treasury.  Stock options exercisable for shares of common stock are excluded from the computation of diluted earnings per share if they are anti-dilutive due to their exercise price exceeding the average market price during the period.

The impact of stock options which are anti-dilutive are excluded from the computations of diluted earnings per share.  The dilutive impact of these securities could be included in future computations of diluted earnings per share if the market price of the common stock increases.  The following table sets forth the number of stock options excluded for the periods indicated:

	Three Months Ended March 31,
	2014	2013
Stock options excluded	700,598	102,193

The following tables set forth the Company’s unaudited earnings per share calculations for the periods indicated:

	Three Months Ended March 31,
	2014					2013
	Net  Income		Shares	Per Share Amount		Net Income		Shares	Per Share  Amount
	(dollars in thousands, except per share data)
Net income	$	2,632				$	1,972
Basic income available to common stockholders	2,632		17,041,594	$	0.15	1,972		14,355,407	$	0.14
Effect of dilutive stock options	—		334,407			—		761,809
Diluted income available to common stockholders plus assumed conversions	$	2,632	17,376,001	$	0.15	$	1,972	15,117,216	$	0.13