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Earnings per Share
 12 Months Ended
Dec. 31, 2012
Earnings per Share [Abstract]  
Earnings per Share

(13) 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 years indicated:

 

                         
    2012     2011     2010  

Basic earnings (loss) per common share:

                        

Net income (loss)

   $ 2,821,969     $ 2,857,270     $ (3,551,740 ) 

Less:

                        

Preferred stock dividends

     1,124,417       1,512,750       1,512,750  

Accretion of discount on preferred stock

     659,244       476,474       476,474  
   

 

 

    

 

 

    

 

 

  

Net income (loss) available to common shareholders

   $ 1,038,308     $ 868,046     $ (5,540,964 ) 
   

 

 

    

 

 

    

 

 

  

Basic earnings (loss) per share

   $ 0.21     $ 0.18     $ (1.15 ) 
   

 

 

    

 

 

    

 

 

  

Diluted earnings (loss) per common share:

                        

Net income (loss)

   $ 2,821,969     $ 2,857,270     $ (3,551,740 ) 

Less:

                        

Preferred stock dividends

     1,124,417       1,512,750       1,512,750  

Accretion of discount on preferred stock

     659,244       476,474       476,474  
   

 

 

    

 

 

    

 

 

  

Net income (loss) available to common shareholders

   $ 1,038,308     $ 868,046     $ (5,540,964 ) 
   

 

 

    

 

 

    

 

 

  

Average shares outstanding

     4,839,114       4,839,114       4,839,114  

Effect of dilutive stock options

     0       0       0  
   

 

 

    

 

 

    

 

 

  

Average shares outstanding including dilutive stock options

     4,839,114       4,839,114       4,839,114  
   

 

 

    

 

 

    

 

 

  

Diluted earnings (loss) per share

   $ 0.21     $ 0.18     $ (1.15 ) 
   

 

 

    

 

 

    

 

 

  

Under the treasury stock method, outstanding stock options are dilutive when the average market price of the Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when the 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 years ended December 31, 2012, 2011 and 2010 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.

 

                         
    2012     2011     2010  

Anti-dilutive shares—option shares

     215,343       270,634       270,835  

Anti-dilutive shares—warrant shares

     287,133       287,133       287,133  
   

 

 

    

 

 

    

 

 

  

Total anti-dilutive shares

     502,476       557,767       557,968