Earnings Per Common Share (EPS)

9 Months Ended

Sep. 30, 2015

Earnings Per Common Share (EPS) [Abstract]

Note 3 – Earnings Per Common Share (EPS)

Currently, only the option shares granted to certain officers and other employees of Financial pursuant to the Amended and Restated Stock Option Plan of 1999 Financial (the “1999 Plan”) are considered in calculating diluted earnings per share. The following is a summary of the earnings per share calculation for the three and nine months ended September 30, 2015 and 2014.

Note 3 – Earnings Per Share (continued)



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2015	2014	2015	2014

Net income	$ 983,000	$ 914,000	$ 2,867,000	$ 2,462,000

Basic EPS weighted average shares outstanding	3,371,616	3,364,874	3,371,616	3,364,874
Incremental shares attributable to stock options	-	-	-	-

Diluted EPS weighted average shares outstanding	3,371,616	3,364,874	3,371,616	3,364,874


Basic earnings per common share	$ 0.29	$ 0.27	$ 0.85	$ 0.73

Diluted earnings per common share	$ 0.29	$ 0.27	$ 0.85	$ 0.73

The following table sets forth the incremental shares associated with option shares that were not included in calculating the diluted earnings because their effect was anti-dilutive:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2015	2014	2015	2014
Incremental shares excluded from calculating diluted EPS because their effect was anti-dilutive	66,313	110,147	66,313	110,645

The foregoing shares were anti-dilutive because the exercise price of the options was greater than the market price on September 30, 2015 and 2014.