EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2011

7.	EARNINGS (LOSS) PER SHARE

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

	Three Months Ended						Nine Months Ended
(Dollars in thousands,	September 30,						September 30,
except per share data)	2011			2010			2011			2010

Basic:
Net income/(loss)	$	(7,436	)	$	(2,493	)	$	(21,410	)	$	(1,801	)
Less:
Preferred stock dividends		(250	)		(250	)		(750	)		(750	)
Accretion on preferred stock discount		(14	)		(14	)		(41	)		(41	)
Net income (loss) available to common shareholders	$	(7,700	)	$	(2,757	)	$	(22,201	)	$	(2,592	)
Weighted average common shares		4,747			4,724			4,741			4,720

Diluted:
Weighted average common shares		4,747			4,724			4,741			4,720
Dilutive effect of stock options and warrants		-			-			-			-
Weighted average common and incremental shares		4,747			4,724			4,741			4,720

Earnings (Loss) Per Common Share:
Basic	$	(1.62	)	$	(0.58	)	$	(4.68	)	$	(0.55	)
Diluted	$	(1.62	)	$	(0.58	)	$	(4.68	)	$	(0.55	)

Stock options for 258,021 shares of common stock were not included in the September 30, 2011 computation of diluted earnings per share for the quarter and year to date because their impact was anti-dilutive. Stock options for 235,021 shares of common stock were not included in the September 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 September 30, 2011 and 2010 were not included in the computation because their impact was also anti-dilutive.