Earnings Per Common Share

6 Months Ended

Jun. 30, 2011

Earnings Per Common Share

Earnings Per Common Share

NOTE (3) – Earnings Per Common Share

Basic earnings per common share is computed by dividing earnings available to common shareholders by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per common share is computed by dividing earnings available to common shareholders by the weighted average number of shares of common stock outstanding for the period, increased for the dilutive effect of common stock equivalents.

The following table shows how we computed basic and diluted earnings per common share for the three and six months ended June 30, 2011 and 2010.

	For the three months ended June 30,						For the six months ended June 30,
	2011			2010			2011			2010
	(Dollars in thousands, except per share)
Basic
Net earnings (loss)	$	(1,722	)	$	846		$	(1,851	)	$	1,834
Less: Preferred stock dividends and accretion		(283	)		(281	)		(566	)		(581	)
Earnings (loss) available to common shareholders	$	(2,005	)	$	565		$	(2,417	)	$	1,253
Weighted average common shares outstanding		1,744,216			1,743,609			1,744,091			1,743,488
Basic earnings (loss) per common share	$	(1.15	)	$	0.32		$	(1.39	)	$	0.72
Diluted
Net earnings (loss)	$	(1,722	)	$	846		$	(1,851	)	$	1,834
Less: Preferred stock dividends and accretion		(283	)		(281	)		(566	)		(581	)
Earnings (loss) available to common shareholders	$	(2,005	)	$	565		$	(2,417	)	$	1,253
Weighted average common shares outstanding		1,744,216			1,743,609			1,744,091			1,743,488
Add: dilutive effects of assumed exercises of stock options		N/A			900			N/A			3,485
Average shares and dilutive potential common shares		1,744,216			1,744,509			1,744,091			1,746,973
Diluted earnings (loss) per common share	$	(1.15	)	$	0.32		$	(1.39	)	$	0.72

Stock options for 227,075 shares of common stock were not considered in computing diluted earnings per common share for the three and six months ended June 30, 2011 and stock options for 237,547 and 212,700 shares of common stock were not considered in computing diluted earnings per common share for the three and six months ended June 30, 2010 because they were anti-dilutive.