Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share

Earnings Per Share

2) Earnings Per Share

        Basic earnings per common share is computed by dividing net income, less dividends and discount accretion on preferred stock, by the weighted average common shares outstanding. On June 21, 2010, the Company issued to various institutional investors 21,004 shares of Series C Convertible Perpetual Preferred Stock ("Series C Preferred Stock"). The 21,004 shares of Series C Preferred Stock remain outstanding as of June 30, 2012, and are convertible into 5,601,000 shares of common stock. The Series C Preferred Stock participate in the earnings of the Company and, therefore, the shares issued on the conversion of the Series C Preferred Stock are considered outstanding under the two-class method of computing basic earnings per common share during periods of earnings. Diluted earnings per share reflect potential dilution from outstanding stock options and common stock warrants, using the treasury stock method. The common stock warrant was antidilutive at June 30, 2012 and 2011. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		2011		2012		2011
Net income available to common shareholders	$	2,679	$	1,482	$	3,548	$	2,467
Less: net income allocated to Series C Preferred Stock		470		260		623		434
Net income allocated to common shareholders	$	2,209	$	1,222	$	2,925	$	2,033
Weighted average common shares outstanding for basic earnings per common share		26,290,480		26,243,334		26,289,907		26,238,168
Dilutive effect of stock options oustanding, using the the treasury stock method		27,011		3,675		28,058		5,566
Shares used in computing diluted earnings per common share		26,317,491		26,247,009		26,317,965		26,243,734
Basic earnings per share	$	0.08	$	0.05	$	0.11	$	0.08
Diluted earnings per share	$	0.08	$	0.05	$	0.11	$	0.08