EX-11. 2 c92688exv11w.htm EXHIBIT 11. Exhibit 11.
EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except share data)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    September 30,     September 30,  
    2009     2008     2009     2008  
Earnings per common share — basic (1)
                                
Net income
   $ 819     $ 621     $ 1,513     $ 1,307  
Less: TARP CPP Preferred Dividends
     237       —       474       —  
Dividends paid and undistributed earnings allocated to participating securities
     4       —       6       —  
 
                        
Net Income Available to Common Shareholders
   $ 578     $ 621     $ 1,032     $ 1,307  
 
                        
 
                                
Weighted average common shares outstanding
     2,474,719       2,468,988       2,472,383       2,473,422  
 
                        
 
                                
Earnings per common share
   $ 0.23     $ 0.25     $ 0.42     $ 0.53  
 
                        
 
                                
Earnings per common share — diluted
                                
Net income
   $ 819     $ 621     $ 1,513     $ 1,307  
Less: TARP CPP Preferred Dividends
     237       —       474       —  
Dividends paid and undistributed earnings allocated to participating securities
     4       —       6       —  
 
                        
Net Income Available to Common Shareholders
   $ 578     $ 621     $ 1,032     $ 1,307  
 
                        
 
                                
Weighted average common shares outstanding — basic
     2,474,719       2,468,988       2,472,383       2,473,422  
Effect of dilutive securities — stock options and unvested restricted stock (2)
     18,426       29,571       18,426       34,144  
 
                        
Weighted average shares outstanding — diluted
     2,493,145       2,498,559       2,490,809       2,507,566  
 
                        
 
                                
Earnings per common share
   $ 0.23     $ 0.25     $ 0.41     $ 0.52  
 
                        
     
(1)  
In June 2008, the FASB issued a new accounting guidance which clarifies that unvested stock-based compensation awards containing non-forfeitable rights to dividends are considered participating securities and therefore are included in the two-class method for calculating earnings per share. Under the two-class method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The Company grants restricted stock to certain employees under its stock-based compensation plan. Recipients receive cash dividends during the vesting periods of these awards )i.e., including on the unvested portion of such awards). Since these dividends are non-forfeitable, the unvested awards are considered participating securities and will have earnings allocated to them.
 
(2)  
As of September 30, 2009, there were no potentially dilutive shares except for 18,426 unvested restricted shares which are also participating securities.

 

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