Earnings per Common Share

9 Months Ended

Sep. 30, 2012

Earnings per Common Share [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 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 released to plan participants.

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

	Three months ended				Nine months ended
	September 30,				September 30,
(In thousands, except per share data)	2012		2011		2012		2011
Basic Earnings Per Common Share
Net income available to common shareholders	$	557	$	293	$	1,552	$	1,071
Weighted average common shares outstanding		2,505		2,493		2,503		2,488
Basic earnings per common share	$	0.22	$	0.12	$	0.62	$	0.43
Diluted Earnings Per Common Share
Net income available to common shareholders	$	557	$	293	$	1,552	$	1,071
Weighted average common shares outstanding		2,505		2,493		2,503		2,488
Effect of assumed exercise of stock options		12		11		6		5
Effect of assumed exercise of stock warrants		-		43		4		43
Diluted weighted average common shares outstanding		2,517		2,547		2,513		2,536
Diluted earnings per common share	$	0.22	$	0.11	$	0.62	$	0.42