Earnings Per Share of Common Stock

6 Months Ended

Jun. 30, 2011

NOTE 4 — EARNINGS PER SHARE OF COMMON STOCK

Basic earnings (loss) per share (“EPS”) of common stock is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share of common stock is computed by dividing net income available to common shareholders by the weighted average number of common shares and potential common shares outstanding during the period. Stock options, warrants and restricted common shares are regarded as potential common shares. Potential common shares are computed using the treasury stock method. For the three and six months ended June 30, 2011, 978,659 options and warrants are excluded from the effect of dilutive securities because they are anti-dilutive; 1,017,645 options are similarly excluded from the effect of dilutive securities for the three and six months ended June 30, 2010.

The following is a reconciliation of the numerators and denominators used in the basic and diluted earnings per share computations for the three and six months ended June 30, 2011 and 2010:


	Three Months Ended
	June 30,
	2011			2010
Basic Earnings (loss) Per Share

Net income (loss)	$	(11,134	)	$	2,811
Less: preferred stock dividends and accretion of discount on warrants		1,250			1,250

Net income (loss) available to common shareholders	$	(12,384	)	$	1,561


Weighted average common shares outstanding		13,126,923			13,097,611


Basic earnings (loss) per share available to common shareholders	$	(0.94	)	$	0.12


Diluted Earnings (loss) Per Share

Net income (loss)	$	(11,134	)	$	2,811
Less: preferred stock dividends and accretion of discount on warrants		1,250			1,250

Net income (loss) available to common shareholders	$	(12,384	)	$	1,561


Weighted average common shares outstanding		13,126,923			13,097,611

Add: Dilutive effects of assumed conversions of restricted stock and exercises of stock options and warrants		—			60,520


Weighted average common and dilutive potential common shares outstanding		13,126,923			13,158,131


Diluted earnings (loss) per share available to common shareholders	$	(0.94	)	$	0.12


¹		Diluted weighted average shares outstanding exclude 105,734 restricted average shares for the three month period ended June 30, 2011 because their impact would be anti-dilutive.


	Six Months Ended
	June 30,
	2011			2010
Basic Earnings (Loss) Per Common Share

Net income (loss)	$	(21,445	)	$	6,007
Less: preferred stock dividends and accretion of discount on warrants		2,500			2,500

Net income (loss) available to common shareholders	$	(23,945	)	$	3,507


Weighted average common shares outstanding		13,117,811			13,090,021


Basic earnings (loss) per share available to common shareholders	$	(1.83	)	$	.27


Diluted Earnings (Loss) Per Common Share

Net income (loss)	$	(21,445	)	$	6,007
Less: preferred stock dividends and accretion of discount on warrants		2,500			2,500

Net income (loss) available to common shareholders	$	(23,945	)	$	3,507


Weighted average common shares outstanding		13,117,811			13,090,021

Add: Dilutive effects of assumed conversions of restricted stock and exercises of stock options and warrants¹		—			58,025


Weighted average common and dilutive potential common shares outstanding		13,117,811			13,148,226


Diluted earnings (loss) per share available to common shareholders	$	(1.83	)	$	.27


¹		Diluted weighted average shares outstanding exclude 92,524 and 85,697 restricted average shares for the three and six month periods ended June 30, 2011 respectively because their impact would be anti-dilutive.