Earnings Per Common Share

3 Months Ended

Mar. 31, 2013

Earnings per Common Share [Abstract]

Earnings per Common Share

(10)         Earnings per Common Share

Earnings per share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each of the years presented.  The following data show the amounts used in computing basic and diluted earnings per share.  As shown in the table that follows, diluted earnings per share is computed using weighted average common shares outstanding, plus weighted average common shares available from the exercise of all dilutive stock warrants issued to the U.S. Treasury under the provisions of the Capital Purchase Program, based on the average share price of Mid Penn’s common stock during the period.

The computations of basic earnings per common share follow:

(Dollars in thousands, except per share data)	Three Months Ended March 31,
	2013		2012
Net Income	$	685	$	1,134
Less:  Dividends on Series A preferred stock		-		(125)
Accretion of Series A preferred stock discount		(14)		(3)
Dividends on Series B preferred stock		(47)		-
Net income available to common shareholders	$	624	$	1,006
Weighted average common shares outstanding		3,489,729		3,484,538
Basic earnings per common share	$	0.18	$	0.29

The computations of diluted earnings per common share follow:

(Dollars in thousands, except per share data)	Three Months Ended March 31,
	2013		2012
Net income available to common stockholders	$	624	$	1,006
Weighted average number of common shares outstanding		3,489,729		3,484,538
Dilutive effect of potential common stock arising from stock warrants:
Exercise of outstanding stock warrants issued to U.S. Treasury
under the Capital Repurchase Program		-		-
Adjusted weighted-average common shares outstanding		3,489,729		3,484,538
Diluted earnings per common share	$	0.18	$	0.29

As of March 31, 2013 Mid Penn no longer had any warrants outstanding.  As of March 31, 2012, Mid Penn had 73,099 warrants outstanding that were anti-dilutive because the fair value of the common stock was below the $20.52 exercise price of these warrants.