Earnings per Common Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 17. Earnings per Common Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings 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 per common share have been computed based on the following:

	2014		2013		2012
Net income	$	1,638,282	$	1,680,809	$	1,402,063
Less: Preferred stock dividend requirements		1,500,000		1,500,000		1,229,780
Less: Preferred stock accretion		71,382		71,381		63,924
Net income applicable to common stock	$	66,900	$	109,428	$	108,359
Average number of common shares outstanding		6,614,414		6,547,074		6,500,396
Effect of dilutive stock options		222,373		115,213		50,136
Average number of common shares outstanding used to calculate diluted earnings per common share		6,836,787		6,662,287		6,550,532

The effects of outstanding antidilutive stock options are excluded from the computation of diluted earnings per common share. There were 217,435, 358,550, and 358,550, antidilutive stock options for 2014, 2013 and 2012, respectively.