Earnings per Common Share

6 Months Ended

Jun. 30, 2014

Earnings per Common Share [Abstract]

(3) Earnings per Common Share

Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Net income available to common shareholders is net income less the total of preferred dividends declared. Diluted earnings per share include the potential dilutive effect that could occur upon the assumed exercise of issued stock options that are not anti-dilutive using the treasury stock method. Anti-dilutive stock options, not included in the computation below, were 10,000 in the three and six month periods ended June 30, 2014 and - and 53,000 in the three and six month periods ended June 30, 2013, respectively. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released to plan participants.

The following table sets forth the calculation of basic and diluted earnings per share:

	Three months ended				Six months ended
	June 30,				June 30,
(In thousands, except per share data)	2014		2013		2014		2013
Basic Earnings Per Common Share
Net income available to common shareholders	$	646	$	823	$	1,135	$	1,328
Weighted average common shares outstanding		2,533		2,515		2,532		2,514
Basic earnings per common share	$	0.26	$	0.33	$	0.45	$	0.53

Diluted Earnings Per Common Share
Net income available to common shareholders	$	646	$	823	$	1,135	$	1,328
Weighted average common shares outstanding		2,533		2,515		2,532		2,514
Effect of assumed exercise of stock options		26		16		24		8
Diluted weighted average common shares outstanding		2,559		2,531		2,556		2,522
Diluted earnings per common share	$	0.25	$	0.33	$	0.44	$	0.53

- Definition

The entire disclosure for earnings per share.

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PATHFINDER BANCORP INC 10-Q