4. Earnings Per Common Share

Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are treated as retired for earnings per share purposes. Options to purchase 8,625 common shares, at exercise prices ranging from $4.60 to $5.75, and 103,570 common shares, at exercise prices ranging from $3.23 to $5.75, were outstanding as of March 31, 2014 and 2013, respectively, but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share.


	Three months ended March 31,
	2014		2013
	(In thousands, except per share data)
Numerator:
Net income	$	930	$	1,056
Preferred stock dividends		53		52
Net income available to common shareholders	$	877	$	1,004
Denominator:
Weighted average common shares outstanding (basic)		18,786		19,168
Effect of stock options		118		89
Weighted average common shares outstanding (diluted)		18,904		19,257
Earnings per common share:
Basic	$	0.05	$	0.05
Diluted		0.05		0.05

- Definition

The entire disclosure for earnings per share.

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