EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 13 – EARNINGS PER SHARE

Basic earnings per share of common stock are based on the weighted average number of common shares outstanding during the period. Unvested but issued restricted shares are considered to be outstanding shares and used to calculate the weighted average number of shares outstanding and determine net book value per share. Diluted earnings per share is calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of outstanding stock options. On June 19, 2012, the Company declared a 5% stock dividend to shareholders of record July 16, 2012, which was paid in the form of additional common stock on July 30, 2012. All references in the accompanying consolidated financial statements and footnotes to the number of common shares and per share amounts during 2012 have been restated to reflect the 5% stock dividend.

Presented below are the calculations for basic and diluted earnings per share:

	Three months ended				Nine months ended
	September 30,				September 30,
(dollars in thousands, except per share data – unaudited)	2013		2012		2013		2012
Net income	$	13	$	1,226	$	3,183	$	4,324
Weighted average shares outstanding		1,651,518		1,663,472		1,653,098		1,663,221
Effect of dilutive stock options outstanding		—		—		—		76
Diluted weighted average shares outstanding		1,651,518		1,663,472		1,653,098		1,663,297
Basic earnings per share	$	0.01	$	0.74	$	1.93	$	2.60
Diluted earnings per share	$	0.01	$	0.74	$	1.93	$	2.60