Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE C – EARNINGS PER SHARE

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. ESOP shares are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per common share are restated for all stock splits and stock dividends through the date of issue of the financial statements.

A reconciliation of the numerators and denominators of basic and diluted earnings per share for the three and nine month periods ended September 30, 2011 and 2010 is as follows (dollars in thousands, except per share data):

	Three Months Ended September 30, 2011		Three Months Ended September 30, 2010		Nine Months Ended September 30, 2011		Nine Months Ended September 30, 2010
Basic earnings per share:
Net income	$	887	$	870	$	2,397	$	2,375
Weighted average common shares outstanding		2,358,599		2,340,717		2,347,655		2,339,121
Less unallocated ESOP shares		19,692		28,799		21,911		28,604
Weighted average common shares outstanding for basic earnings per share		2,338,907		2,311,918		2,325,744		2,310,517
Basic earnings per share	$	0.38	$	0.38	$	1.03	$	1.03
Diluted earnings per share:
Net income	$	887	$	870	$	2,397	$	2,375
Weighted average common shares outstanding for basic earnings per share		2,338,907		2,311,918		2,325,744		2,310,517
Add: Dilutive effect of assumed exercise of stock options		4,427		3,986		4,519		3,312
Weighted average common and dilutive potential common shares outstanding		2,343,334		2,315,904		2,330,263		2,313,829
Diluted earnings per share	$	0.38	$	0.38	$	1.03	$	1.03

Stock option awards that were anti-dilutive, and therefore not included in the computation of diluted earnings per share, were as follows: 199,961 and 197,702 as of September 30, 2011 and 2010, respectively.