Earnings Per Common Share

9 Months Ended

Sep. 30, 2011

Earnings Per Common Share [Abstract]

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 the Company computed basic and diluted earnings per common share for the three and nine months ended September 30, 2011 and 2010.

	For the three months ended September 30,						For the nine months ended September 30,
	2011			2010			2011			2010
	(Dollars in thousands, except per share)
Basic
Net earnings (loss)	$	(7,534	)	$	(156	)	$	(9,385	)	$	1,678
Less: Preferred stock dividends and accretion		(264	)		(282	)		(830	)		(863	)
Earnings (loss) available to common shareholders	$	(7,798	)	$	(438	)	$	(10,215	)	$	815
Weighted average common shares outstanding		1,744,565			1,743,965			1,744,251			1,743,649
Basic earnings (loss) per common share	$	(4.47	)	$	(0.25	)	$	(5.86	)	$	0.47
Diluted
Net earnings (loss)	$	(7,534	)	$	(156	)	$	(9,385	)	$	1,678
Less: Preferred stock dividends and accretion		(264	)		(282	)		(830	)		(863	)
Earnings (loss) available to common shareholders	$	(7,798	)	$	(438	)	$	(10,215	)	$	815
Weighted average common shares outstanding		1,744,565			1,743,965			1,744,251			1,743,649
Add: dilutive effects of assumed exercises of stock options		N/A			N/A			N/A			1,319
Average shares and dilutive potential common shares		1,744,565			1,743,965			1,744,251			1,744,967
Diluted earnings (loss) per common share	$	(4.47	)	$	(0.25	)	$	(5.86	)	$	0.47

Stock options for 227,075 shares of common stock were not considered in computing diluted earnings per common share for the three and nine months ended September 30, 2011 and stock options for 237,547 and 223,547 shares of common stock were not considered in computing diluted earnings per common share for the three and nine months ended September 30, 2010 because they were anti-dilutive.