EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS (LOSS) PER SHARE

7. EARNINGS (LOSS) PER SHARE

The reconciliation of the numerators and denominators of the basic and diluted EPS is as follows:

	Three Months Ended						Six Months Ended
(Dollars in thousands,	June 30,						June 30,
except per share data)	2011			2010			2011			2010
Basic:
Net income/(loss)	$	(11,904	)	$	(62	)	$	(13,974	)	$	693
Less:
Preferred stock dividends		(250	)		(250	)		(500	)		(500	)
Accretion on preferred stock discount		(13	)		(13	)		(27	)		(27	)
Net income (loss) available to common shareholders	$	(12,167	)	$	(325	)	$	(14,501	)	$	166
Weighted average common shares		4,740			4,718			4,738			4,717
Diluted:
Weighted average common shares		4,740			4,718			4,738			4,717
Dilutive effect of stock options and warrants		-			-			-			-
Weighted average common and incremental shares		4,740			4,718			4,738			4,717
Earnings (Loss) Per Common Share:
Basic	$	(2.57	)	$	(0.07	)	$	(3.06	)	$	0.04
Diluted	$	(2.57	)	$	(0.07	)	$	(3.06	)	$	0.04

Stock options for 266,521 shares of common stock were not included in the June 30, 2011 computation of diluted earnings per share for the quarter and year to date because their impact was anti-dilutive.  Stock options for 215,983 shares of common stock were not included in the June 30, 2010 computation of diluted earnings per share for the quarter and year to date because their impact was anti-dilutive.  Warrants to purchase 215,983 shares at June 30, 2011 and 2010 were not included in the computation because their impact was also anti-dilutive.