Earnings and Dividends per Share

9 Months Ended

Sep. 30, 2012

Earnings and Dividends per Share

Earnings and Dividends per Share

5.Earnings and Dividends per Share

Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding.  Diluted income per share is determined by dividing the net income by the sum of (1) the weighted average number of common shares outstanding and (2) if not anti-dilutive, the effect of stock options and warrants determined utilizing the treasury stock method.  During 2012, no stock options or warrants are outstanding.  As such, there is no dilutive effect on earnings per share for 2012.  The dilutive effect of outstanding stock option awards for the quarter and nine months ended September 30, 2011 was 14,000 and 148,000 shares, respectively.

The Company declared and paid three quarterly dividends of $0.025 per share in the first nine months of 2012. Dividends paid during the quarter and nine months ended September 30, 2012, were $211,000 and $629,000, respectively.  The Company began paying quarterly dividends in the third quarter of 2011.  As such, dividends paid in the quarter and nine months ended September 30, 2011 were $163,000.