EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the six months ended June 30, 2014 includes the weighted average of common shares outstanding.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities.  The calculation of diluted earnings per share for the six months ended June 30, 2014 does not include options to purchase 906,000 shares due to their anti-dilutive effect.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the six months ended June 30, 2014 and 2013: 

	2014		2013
Basic Earnings per Share
Numerator:
Net income available to common shareholders	$	7,863,247	$	2,974,865
Denominator:
Weighted-average shares outstanding	22,025,316		17,243,762
Basic earnings per share	$	0.36	$	0.17
Diluted Earnings per Share
Numerator:
Net income available to common shareholders	$	7,863,247	$	2,974,865
Denominator:
Weighted-average shares outstanding	22,025,316		17,243,762
Effect of dilutive securities
Stock options and warrants	1,178,626		1,210,007
Preferred stock	675,558		1,345,220
Diluted weighted-average shares outstanding	23,879,500		19,798,989
Diluted earnings per share	$	0.33	$	0.15