Net Income Per Share

9 Months Ended

Sep. 30, 2011

Net Income Per Share [Abstract]

Net Income Per Share

(2) Net Income Per Share

Basic net income per share is calculated by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. For purposes of basic net income per share, restricted stock is considered "contingently issuable" and is not included in the weighted average number of common shares outstanding.

Diluted net income per share is computed by assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. Restricted stock is considered outstanding for purposes of diluted net income per share. The amount of compensation cost attributed to future services and not yet recognized is considered "proceeds" using the treasury stock method. Restricted stock had no dilutive effect on earnings per share for the nine or three-month periods ended September 30, 2011 and September 30, 2010.

In computing diluted net income per share, it is assumed that all dilutive stock options are exercised during the reporting period at their respective exercise prices, with the proceeds from the exercises used by the Company to buy back stock in the open market at the average market price in effect during the reporting period. The difference between the number of shares assumed to be exercised and the number of shares bought back is added to the number of weighted average common shares outstanding during the period. The sum is used as the denominator to calculate diluted net income per share for the Company. Diluted weighted average shares outstanding did not increase for the nine and three months ended September 30, 2011 as there was no dilutive impact of options for the periods. For the nine months ended September 30, 2010, diluted weighted average shares outstanding increased by 43 due to the dilutive impact of options. Stock options had no impact on diluted weighted average shares for the three months ended September 30, 2010. For the nine month period ending September 30, 2011, the warrant, covering approximately 145 thousand shares, issued to the U.S. Treasury Department and 28,513 options were not included in the computation of diluted earnings per share as the effect would have been anti-dilutive. For the three month period ending September 30, 2011, the warrant, covering approximately 145 thousand shares, issued to the U.S. Treasury Department and 28,513 options were not included in the computation of diluted earnings per share because the exercise price exceeded the average market price of the Company's stock for that period. There were 28,513 options outstanding for both the nine and three months ended September 30, 2010, that were not included in the computation of diluted net income per share because the exercise price was above the average market value of the Company's stock for the periods. As of September 30, 2010, the warrant, covering approximately 145 thousand shares, issued to the U.S. Treasury Department was not included in the computation of net income per share for either the nine or three-month period because its exercise price exceeded the average market price of the company's stock for the periods.

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Net Income (Loss) Per Share for the nine months ended September 30.

	Nine months ended September 30, 2011 (dollars in thousands, except per share data)
	Income (Numerator)			Shares (Denominator)		Per Share Amount
Basic net loss per share	$	(209	)		2,849,841	$	(0.07	)
Effect of dilutive securities		—			—
Diluted net loss per share	$	(209	)		2,849,841	$	(0.07	)

	Nine months ended September 30, 2010 (dollars in thousands, except per share data)
	Income (Numerator)		Shares (Denominator)		Per Share Amount
Basic net income per share	$	1,187		2,849,511	$	0.42
Effect of dilutive securities		—		43
Diluted net income per share	$	1,187		2,849,554	$	0.42

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Net Income Per Share for the three months ended September 30.

	Three months ended September 30, 2011 (dollars in thousands, except per share data)
	Income (Numerator)		Shares (Denominator)		Per Share Amount
Basic net income per share	$	260		2,849,841	$	0.09
Effect of dilutive securities		—		—
Diluted net income per share	$	260		2,849,841	$	0.09

	Three months ended September 30, 2010 (dollars in thousands, except per share data)
	Income (Numerator)		Shares (Denominator)		Per Share Amount
Basic net income per share	$	273		2,849,841	$	0.10
Effect of dilutive securities		—		—
Diluted net income per share	$	273		2,849,841	$	0.10