Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

Note 3:Earnings Per Share

Basic earnings (loss) per share represents income available to common stockholders divided by the weighted average number of shares outstanding during each year.  Diluted earnings (loss) per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.  The computation of per share loss for the three months and six months ended June 30, 2011 and 2010 is as follows:

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2011	2010	2011	2010
(amounts in thousands, except share and per share data)
Net loss	$                (2,147)	$                (1,212)	$                (2,576)	$                (2,085)
Preferred dividends	(272)	(272)	(544)	(544)
Net loss available to common stockholders	$                (2,419)	$                (1,484)	$                (3,120)	$                (2,629)
Average common shares outstanding	2,806,026	2,772,944	2,802,077	2,768,064
Average common share stock options outstanding and restricted stock (B)	17,706	11,205	23,072	14,851
Average diluted common shares (B)	2,823,732	2,784,149	2,825,149	2,782,915
Basic loss per share	($0.86)	($0.54)	($1.11)	($0.95)
Diluted loss per share (A)	($0.86)	($0.54)	($1.11)	($0.95)
(A)          No shares of stock options, restricted stock or warrants were included in the computation of diluted earnings per share for any period there was a loss.
(B)          Warrants to purchase 111,083 shares of common stock at an exercise price of $29.37 per share were outstanding at June 30, 2011 and 2010, but were not included in the computation of diluted earnings per share because the warrant's exercise price was greater than the average market price of the common shares, thus making the warrants anti-dilutive.  Stock options to purchase 24,375 and 33,875 shares of common stock were outstanding at June 30, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share because the option's exercise price was greater than the average market price of the common shares, thus making the options anti-dilutive.

Income available for common stockholders is reduced by dividends declared in the period on preferred stock (whether or not they are paid) and the accretion of the warrants.