Net Income per Share

6 Months Ended

Jun. 30, 2012

Net Income per Share [Abstract]

Net Income per Share

NOTE 3.  Net Income per Share

Basic net income per common share is calculated as net income available to common shareholders divided by the weighted average common shares outstanding during the reporting period.  Net income available to common shareholders is calculated as net income less accrued dividends and discount accretion related to preferred stock. 

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options and warrants were issued during the reporting period utilizing the Treasury stock method.

The following is a reconciliation of the calculation of basic and diluted income per share.  

	For the three months ended June 30,				For the six months ended June 30,
(In thousands, except per share amounts)	2012		2011		2012		2011
Net income	$	976	$	644	$	1,881	$	863
Less: Preferred stock dividends and discount accretion		401		395		797		778
Income available to common shareholders	$	575	$	249	$	1,084	$	85
Weighted average common shares outstanding - Basic		7,462		7,271		7,461		7,245
Plus: Potential dilutive common stock equivalents		322		439		327		443
Weighted average common shares outstanding - Diluted		7,784		7,710		7,788		7,688
Net income per common share - Basic	$	0.08	$	0.03	$	0.15	$	0.01
Net income per common share - Diluted		0.07		0.03		0.14		0.01
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive		505		346		504		345

The "potential dilutive common stock equivalents" and the "stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive" shown in the table above include the impact of 764,778 common stock warrants issued to the U.S. Department of Treasury under the Capital Purchase Program in December 2008, as applicable.  These warrants were dilutive for the three and six months ended June 30, 2012 and 2011.