Earnings Per Common Share

3 Months Ended

Mar. 31, 2015

NOTE 3. Earnings Per Common Share

Basic earnings per share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Nonvested restricted shares are included in basic earnings per share because of dividend participation and voting rights. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The number of potential common shares is determined using the treasury method and relates to outstanding stock options.

The following table shows the weighted average number of shares used in computing earnings per share for the three months ended March 31, 2015 and 2014 and the effect on the weighted average number of shares of dilutive potential common stock. Potential dilutive common stock had no effect on income available to common shareholders.



	Three Months Ended
	March 31,
	2015	2014
Average number of common shares outstanding	3,477,249	3,413,920
Effect of dilutive common stock	—	—
Average number of common shares outstanding used to calculate diluted earnings per share	3,477,249	3,413,920

- Definition

The entire disclosure for earnings per share.

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