Earnings per Common Share

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Earnings per Common Share

(3)  Earnings per Common Share

Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Net income available to common shareholders is net income less the total of preferred dividends declared, which includes SBLF dividends during 2012, and the amortization of the preferred stock discount value under the CPP program during 2011.  Diluted earnings per share include the potential dilutive effect that could occur upon the assumed exercise of issued stock options and the warrants issued to the U.S. Treasury using the treasury stock method.  Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be allocated to plan participants.

The following table sets forth the calculation of basic and diluted earnings per share:

	Three months ended
	March 31,
(In thousands, except per share data)	2012		2011
Basic Earnings Per Common Share
Net income available to common shareholders	$	391	$	309
Weighted average common shares outstanding		2,500		2,485
Basic earnings per common share	$	0.16	$	0.12
Diluted Earnings Per Common Share
Net income available to common shareholders	$	391	$	309
Weighted average common shares outstanding		2,500		2,485
Effect of assumed exercise of stock options		3		1
Effect of assumed exercise of stock warrants		16		39
Diluted weighted average common shares outstanding		2,519		2,525
Diluted earnings per common share	$	0.16	$	0.12