EARNINGS (LOSS) PER COMMON SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS (LOSS) PER COMMON SHARE [Abstract]

EARNINGS (LOSS) PER COMMON SHARE

2.           EARNINGS PER COMMON SHARE

Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period.  Income available to common stockholders is net income less preferred stock dividends and accretion of discount on preferred stock, treated as preferred stock dividends.  Diluted earnings per common share reflects the potential dilution that would occur if the Company's outstanding stock options and warrants were exercised and converted into common stock and the Company's outstanding restricted stock was vested.  The dilutive effect is computed using the treasury stock method, which assumes all outstanding stock options and warrants are exercised.  The incremental shares issuable upon exercise of the stock options and warrants, to the extent they would have been dilutive, are included in the denominator of the diluted earnings per common share calculation.  The calculation of earnings per common share and diluted earnings per common share for the three and six months ended June 30, 2011 and 2010 is presented below.

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
Basic earnings per common share:
Net Income (loss)	$	547,812	$	(129,016	)	$	1,238,044	$	499,592
Preferred stock dividends and accretion of discount		132,417		132,169			264,771		264,278
Net income (loss) available to common stockholders	$	415,395	$	(261,185	)	$	973,273	$	235,314
Weighted average common shares outstanding - basic		1,350,223		1,346,906			1,349,092		1,345,933
Basic earnings (loss) per common share	$	0.31	$	(0.19	)	$	0.72	$	0.17
Diluted earnings (loss) per common share:
Net income (loss) available to common stockholders		415,395		(261,185	)		973,273		235,314
Weighted average common shares outstanding - basic		1,350,223		1,346,906			1,349,092		1,345,933
Effect of dilutive securities:
Stock Options(1)(2)		-		-			-		-
Restricted Stock(2)		4,014		-			3,758		3,659
Common stock warrant(2)		6,546		-			6,315		4,228
Total diluted average common shares issued and		1,360,783		1,346,906			1,359,165		1,353,820
outstanding
Diluted earnings (loss) per common share	$	0.31	$	(0.19	)	$	0.72	$	0.17
1For the three months ending June 30, 2011 and six months ending June 30, 2011 and 2010, outstanding options to purchase common stock totaled 50,700 and 65,200, respectively.  These options were not
dilutive because the exercise price of the options exceeded the average closing price for the Company's common stock.
2For the three months ending June 30, 2010, options to purchase 62,500 shares of common stock, 3,500 shares of restricted stock and 99,157 shares of common stock warrants were not dilutive due to a
net loss for the quarter.