Earnings Per Share

6 Months Ended

Jun. 30, 2012

Per share data:

Earnings Per Share [Text Block]

Note 2 -- Earnings Per Share

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding.  Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the assumed conversion of the Company's convertible preferred stock and the Company's stock options, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the three and six-month periods ended June 30, 2012 and 2011 were as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2012			2011			2012			2011
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	3,479,000		$	2,578,000		$	6,869,000		$	5,423,000
Preferred stock dividends		(1,105,000	)		(1,011,000	)		(2,044,000	)		(1,718,000	)
Net income available to common stockholders	$	2,374,000		$	1,567,000		$	4,825,000		$	3,705,000
Weighted average common shares outstanding		6,025,802			6,058,859			6,022,830			6,065,692
Basic earnings per common share	$	.39		$	.26		$	.80		$	.61
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	2,374,000		$	1,567,000		$	4,825,000		$	3,705,000
Effect of assumed preferred stock conversion		-			-			-			-
Net income applicable to diluted earnings per share	$	2,374,000		$	1,567,000		$	4,825,000		$	3,705,000
Weighted average common shares outstanding		6,025,802			6,058,859			6,022,830			6,065,692
Dilutive potential common shares:
Assumed conversion of stock options		8,826			12,722			8,504			12,742
Restricted stock awarded		413			-			331			-
Assumed conversion of preferred stock		-			-			-			-
Dilutive potential common shares		9,239			12,722			8,835			12,742
Diluted weighted average common shares outstanding		6,035,041			6,071,581			6,031,665			6,078,434
Diluted earnings per common share	$	.39		$	.26		$	.80		$	.61

The following shares were not considered in computing diluted earnings per share for the three and six-month periods ended June 30, 2012 and 2011 because they were anti-dilutive:

	Three months ended				Six months ended
	June 30				June 30
	2012		2011		2012		2011
Stock options to purchase shares of common stock		196,220		202,970		196,220		202,970
Average dilutive potential common shares associated with convertible preferred stock		2,092,411		1,950,933		2,087,943		1,882,586