EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 12 – 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 any outstanding stock options.

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

	Three months ended
	March 31,
(dollars in thousands, except per share data – unaudited)	2014		2013
Net income	$	1,450	$	1,609
Weighted average shares outstanding		1,658,017		1,656,162
Effect of dilutive stock options outstanding		—		—
Diluted weighted average shares outstanding		1,658,017		1,656,162
Basic earnings per share	$	0.87	$	0.97
Diluted earnings per share	$	0.87	$	0.97