Calculation of Basic and Diluted Earnings per Share

6 Months Ended

Jun. 30, 2014

Calculation of Basic and Diluted Earnings per Share[Abstract]

Calculation of Basic and Diluted Earnings per Share

Note 5.   Calculation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

(in thousands, except per share amounts)	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Numerator:
Net Income	$	153	$	150	$	860	$	75
Numerator for basic earnings per share -  income available to common shareholders		153		150		860		75
Effect of dilutive securities:
Numerator for diluted earnings per share -  income available to common shareholders  after assumed conversions	$	153	$	150	$	860	$	75
Denominator:
Denominator for basic earnings per share -  weighted-average shares		3,014		2,998		3,014		2,992
Effect of dilutive securities:
Employee stock options		(5)		(1)		-		-
Warrants		393		407		393		204
Dilutive potential common shares		388		406		393		204
Denominator for diluted earnings per share -  weighted-average shares and assumed conversions		3,402		3,404		3,407		3,196
Basic earnings per common share	$	0.05	$	0.05	$	0.29	$	0.03
Diluted earnings per common share	$	0.04	$	0.04	$	0.25	$	0.02

For the three and six month periods ended June 30, 2014 and 2013, approximately 106,000 and 65,000, respectively, of shares issuable upon exercise of employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive.