EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2012

EARNINGS PER COMMON SHARE [Abstract]

EARNINGS 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 months ended March 31, 2012 and 2011 is presented below.

	Three Months Ended March 31,
	2012		2011
Income from continuing operations	$	81,460	$	670,121
Preferred stock dividends and accretion of discount		-		132,354
Income from continuing operations available to
common stockholders	$	81,460	$	537,767
Income from operations of discontinued subsidiary, net of tax		45,075		20,111
Net income available to common stockholders	$	126,535	$	557,878
Weighted average common shares outstanding - basic		1,352,948		1,347,948
Effect of dilutive securities:
Stock options1		-		-
Restricted stock		4,125		3,500
Common stock warrant		-		6,083
Total diluted average common shares issued and		1,357,073		1,357,531
outstanding
Basic earnings per share:
Income from continuing operations	$	0.06	$	0.40
Income from operations of discontinued subsidiary		0.03		0.01
Net income applicable to common stock	$	0.09	$	0.41
Diluted earnings per share:
Income from continuing operations	$	0.06	$	0.40
Income from operations of discontinued subsidiary		0.03		0.01
Net income applicable to common stock	$	0.09	$	0.41
1For the periods ending March 31, 2012 and 2011, outstanding options to purchase common stock totaled
43,500 and 51,700, respectively. These options were not dilutive because the exercise price
of the options exceeded the average closing price for the Company's common stock.

1For the periods ending March 31, 2012 and 2011, outstanding options to purchase common stock totaled 43,500 and 51,700, respectively. These options were not dilutive because the exercise price of the options exceeded the average closing price for the Company's common stock.