Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

(2) Earnings Per Share

Basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share is computed based on the weighted average number of shares outstanding plus the effects of dilutive stock options and warrants outstanding during the year. Basic and diluted earnings per share are calculated as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(Dollars in thousands except per share amounts)
Weighted average shares outstanding used in Basic Earnings per Common Share		7,944,354		7,884,749		7,934,458		7,878,119
Dilutive effect of incentive stock options and warrants		6,174		185		3,925		105
Weighted average shares outstanding used in Diluted Earnings Per Common Share		7,950,528		7,884,934		7,938,383		7,878,224
Net Income	$	1,438	$	712	$	2,943	$	1,842
Dividends and accretion on preferred stock		318		318		637		637
Income Available to Common Shareholders	$	1,120	$	394	$	2,306	$	1,205
Basic Earnings Per Common Share	$	0.14	$	0.05	$	0.29	$	0.15
Diluted Earnings Per Common Share	$	0.14	$	0.05	$	0.29	$	0.15

Options to purchase 232,000 common shares and common stock warrants for 561,343 shares were considered in computing diluted earnings per common share for the three and six month periods ended June 30, 2012. Stock options for 6,174 and 3,925 common shares were considered dilutive and the remaining stock options and the stock warrants were antidilutive for the three and six month periods ended June 30, 2012. Stock options to purchase 197,000 common shares and common stock warrants of 561,343 were considered in computing diluted earnings per common share for the three and six month periods ended June 30, 2011. Stock options to purchase 2,500 common shares were considered dilutive and the remaining stock options and stock warrants were antidilutive for the three and six month periods ended June 30, 2011.