

	Three Months Ended December 31
	2013			2012
	(Dollars in thousands, except for per share data)
Basic net income per common share computation
Numerator – net income	$	1,611		$	1,708
Preferred stock dividends	(136		)	(201		)
Preferred stock discount accretion	(70		)	(63		)
Net income to common shareholders	$	1,405		$	1,444

Denominator – weighted average common shares outstanding	6,853,683			6,815,782

Basic net income per common share	$	0.20		$	0.21

Diluted net income per common share computation
Numerator – net income	$	1,611		$	1,708
Preferred stock dividends	(136		)	(201		)
Preferred stock discount accretion	(70		)	(63		)
Net income to common shareholders	$	1,405		$	1,444

Denominator – weighted average common shares outstanding	6,853,683			6,815,782
Effect of dilutive stock options (1)	29,596			5,224
Effect of dilutive stock warrant (2)	95,106			—
Weighted average common shares and common stock equivalents	6,978,385			6,821,006

Diluted net income per common share	$	0.20		$	0.21

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(1) For the three months ended December 31, 2013 and 2012, average options to purchase 125,198 and 212,152 shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per common share because their effect would have been anti-dilutive.

(2) For the three months ended December 31, 2012, a warrant to purchase 370,899 shares of common stock was outstanding but not included in the computation of diluted net income per common share because the warrant's exercise price was greater than the average market price of the common stock, and, therefore, its effect would have been anti-dilutive.