EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2014

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE C — EARNINGS PER SHARE

Basic earnings per common share are based upon the weighted average number of shares of common stock (“common shares”) outstanding.  Diluted earnings per share are based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities.  All earnings per common share for the three-month periods ended March 31, 2014, and 2013, have been adjusted for the 5% stock dividend paid on May 14, 2013, to shareholders of record as of April 30, 2013.

The following is a reconciliation of net income and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share common share:

	Three Months Ended
	March 31,
	(Unaudited)
	2014		2013
Basic:
Numerator:
Net income	$	4,279,703	$	6,351,472
Denominator:
Basic - weighted average common shares outstanding	21,956,067		21,722,855
Basic EPS	$	0.19	$	0.29
Diluted:
Numerator:
Net income	$	4,279,703	$	6,351,472
Denominator:
Weighted average common shares outstanding	21,956,067		21,722,855
Effect of Dilutive Securities:
Stock options	103,484		463,478
	22,059,551		22,186,333
Diluted EPS	$	0.19	$	0.29