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Earnings (Loss) Per Common Share
12 Months Ended
Dec. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 18.Earnings (Loss) Per Common Share

 

Basic earnings (loss) per share represents income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.

 

Potential common shares that may be issued by Cornerstone relate to outstanding stock options, determined using the treasury stock method.

 

Earnings (loss) per common share have been computed based on the following:

 

  2012  2011  2010 
          
Net income (loss) $1,402,063  $1,030,052  $(4,707,521)
Less: Preferred stock dividend requirements  1,229,780   651,119   34,463 
Less: Preferred stock accretion  63,924   36,718   - 
             
Net income (loss) applicable to common stock $108,359  $342,215  $(4,741,984)
             
Average number of common shares outstanding  6,500,396   6,500,396   6,500,396 
             
Effect of dilutive stock options  50,136   -   - 
             
Average number of common shares outstanding used to calculate diluted earnings (loss) per common share  6,550,532   6,500,396   6,500,396 

 

The effects of outstanding antidilutive stock options are excluded from the computation of diluted earnings (loss) per common share. There were 358,550, 672,850, and 621,150 antidilutive stock options for 2012, 2011 and 2010, respectively.