Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

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 earnings (loss) for the three months ended March 31, 2012 and 2011 is as follows:

		March 31, 2012			March 31, 2011
		(Unaudited)			(Unaudited)
(In thousands, except share and per share data)
Net loss	$	(315	)	$	(429	)
Preferred dividends		(272	)		(272	)
Net loss available to common stockholders	$	(587	)	$	(701	)
Average common shares outstanding		2,845,444			2,798,084
Average common share stock options outstanding and
restricted stock (B)		18,338			24,522
Average diluted common shares (B)		2,863,782			2,822,606
Basic loss per share	$	(0.21	)	$	(0.25	)
Diluted loss per share (A)	$	(0.21	)	$	(0.25	)

(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 March 31, 2012 and 2011, 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 10,575 and 24,375 shares of common stock were outstanding at March 31, 2012 and 2011, 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.