Three months

Nine months

Periods ended September 30, (in thousands)

2013

2012

2013

2012

Net income

$

1,016

$

1,140

$

3,103

$

3,506

Less: Preferred stock dividends declared

(40

)

(46

)

(121

)

(178

)

Less: Undistributed earnings allocated to participating securities

(11

)

-

(31

)

-

Net income allocated to common stock

$

965

$

1,094

$

2,951

$

3,328

Common shares issued

1,710

1,690

1,707

1,690

Less: Unvested restricted stock awards

(19

)

-

(17

)

-

Common shares outstanding used to calculate basic earnings per common share

1,691

1,690

Add: Diluted effect of unvested restricted stock awards

-

Common shares outstanding used to calculate diluted earnings per common share

1,691

1,690

Earnings per common share (basic and diluted)

$

0.57

$

0.65

$

1.75

$

1.97