NOTE 4. EARNINGS PER SHARE

Basic Earnings Per Share (EPS) excludes dilution and is reported separately for continuing operations and discontinued operations. Basic EPS for continuing operations and discontinued operations is computed by dividing net income from continuing operations and discontinued operations available to common stockholders by the weighted average number of common shares outstanding for the period, respectively. Diluted EPS 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 in the issuance of common stock that subsequently shared in the earnings of the entity.

The following is a computation of basic and diluted EPS for the three and nine months ended September 30, 2013, and 2012:


(Dollars in thousands, except per share data)	For the three months ended September 30,					For the nine months ended September 30,
	2013		2012			2013		2012
Earnings Per Share
NUMERATORS:
Net income from continuing operations	$	1,802	$	2,227		$	5,848	$	6,176
Less preferred stock dividends		50		250			150		684

Net income from continuing operations available to common shareholders	$	1,752	$	1,977		$	5,698	$	5,492

Net loss from discontinued operations attributable to controlling interests		0		(507	)		0		(144	)

Net income available to common shareholders	$	1,752	$	1,470		$	5,698	$	5,348

DENOMINATORS:
Weighted average number of common shares outstanding - basic		14,829		16,240			15,208		16,448
Effect of potentially dilutive common shares (1)		24		0			22		0

Weighted average number of common shares outstanding - diluted		14,853		16,240			15,230		16,448

EARNINGS PER COMMON SHARE:
Basic attributable to continuing operations	$	0.12	$	0.11		$	0.37	$	0.21
Basic attributable to discontinued operations	$	0.00	$	0.01		$	0.00	$	0.02
Diluted attributable to continuing operations	$	0.12	$	0.11		$	0.37	$	0.21
Diluted attributable to discontinued operations	$	0.00	$	0.01		$	0.00	$	0.02
Anti-dilutive options not included in earnings per share calculation		116,837		407,455			126,837		407,455

(1)	Represents the effects of the assumed exercise of stock options

On February 7, 2012, the Company announced that its Board of Directors had authorized the purchase of up to 1,019,490 or 6% of its outstanding shares over a twelve-month period. The stock repurchase plan authorized the Company to conduct open market purchases or privately negotiated transactions from time to time when, at management’s discretion, it is determined that market conditions and other factors warranted such purchases. Purchased shares were retired accordingly. Pursuant to the stock repurchase plan, the Company repurchased 144,379 and 870,749 common shares during the three and nine months ended September 30, 2012, respectively. The Company purchased the full amount of shares authorized under the plan as of December 31, 2012. The shares were retired subsequent to purchase.

On January 16, 2013, the Company announced that its Board of Directors had authorized the purchase of up to 1,000,000 or 6% of its outstanding shares over a twelve-month period. The stock repurchase plan authorizes the Company to conduct open market purchases or privately negotiated transactions from time to time when, at management’s discretion, it was determined that market conditions and other factors warrant such purchases. Pursuant to the stock repurchase plan, the Company repurchased 17,827 and 1,000,000 common shares during the three and nine months ended September 30, 2013, respectively. The Company purchased the full amount of shares authorized under the plan as of September 30, 2013. The shares were retired subsequent to purchase.

On August 21, 2013, the Company announced that its Board of Directors had authorized the purchase of up to 1,000,000 or 7% of its outstanding shares over a twelve-month period. The stock repurchase plan authorizes the Company to conduct open market purchases or privately negotiated transactions from time to time when, at management’s discretion, it was determined that market conditions and other factors warrant such purchases. Pursuant to the stock repurchase plan, the Company repurchased 513,668 common shares during the three months ended September 30, 2013. The shares were retired subsequent to purchase.

Total common shares repurchased for the three and nine months ended September 30, 2013 under the both the plan announced February 7, 2012 and the plan announced January 16, 2013 were 531,495 and 1,513,668, respectively.