XML 23 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Earnings per Share
 3 Months Ended
Mar. 31, 2012
Earnings per Share [Abstract]  
Earnings per Share

(10)   Earnings per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common shares that were outstanding during the year. The calculations of basic and diluted earnings per share are as follows:

 

                 
    For the Three Months Ended  
    March 31,  
    2012     2011  

Basic earnings per common share:

                

Net income

   $ 1,450,735     $ 953,617  

Less:

                

Preferred stock dividends

     369,783       369,783  

Accretion of discount on preferred stock

     119,119       119,119  
   

 

 

    

 

 

  

Net income available to common shareholders

   $ 961,833     $ 464,715  
   

 

 

    

 

 

  

Basic earnings per share

   $ 0.21     $ 0.10  
   

 

 

    

 

 

  

Diluted earnings per common share:

                
     

Net income

   $ 1,450,735     $ 953,617  

Less:

                

Preferred stock dividends

     369,783       369,783  

Accretion of discount on preferred stock

     119,119       119,119  
   

 

 

    

 

 

  

Net income available to common shareholders

   $ 961,833     $ 464,715  
   

 

 

    

 

 

  

Average shares outstanding

     4,652,994       4,652,994  

Effect of dilutive stock options

     —         —    
   

 

 

    

 

 

  

Average shares outstanding including dilutive stock options

     4,652,994       4,652,994  
   

 

 

    

 

 

  

Diluted earnings per share

   $ 0.21     $ 0.10  
   

 

 

    

 

 

  

Under the treasury stock method, outstanding stock options are dilutive when the average market price of our Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when our Company has a loss from continuing operations available to common shareholders. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period.

 

The following options to purchase shares during the three months ended March 31, 2012 and 2011 were not included in the respective computations of diluted earnings per share because the exercise price of the option, when combined with the effect of the unamortized compensation expense, was greater than the average market price of the common shares and were considered anti-dilutive.

 

                 
    Three Months Ended  
    March 31,  
    2012     2011  

Anti-dilutive shares - option shares

     223,771       260,274  

Anti-dilutive shares - warrant shares

     276,090       276,090