Earnings / (Loss) Per Share

6 Months Ended

Jun. 30, 2011

Earnings / (Loss) Per Share

Earnings / (Loss) Per Share

Note 7.  Earnings / (Loss) Per Share

Basic earnings / (loss) per common share are computed by dividing net income / (loss) available to common shareholders by the weighted-average number of common shares outstanding for the reporting period.  Diluted earnings / (loss) per common share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares.  Potentially dilutive common shares are calculated using the Treasury Stock Method and include incremental shares issuable upon exercise of outstanding stock options, other share-based compensation awards and any other security in which its conversion / exercise may result in the issuance of common stock, such as the warrant the Company issued to the U.S. Treasury during 2009 or the Series C Perpetual Preferred Stock the Company issued during 2010. U.S. GAAP prohibits the computation of diluted loss per common share from assuming exercise or issuance of securities that would have an anti-dilutive effect, which can occur when the Company reports a net loss.  As a result, any potential dilution associated with share-based compensation awards, the warrant issued to the U.S. Treasury, and the Series C Perpetual Preferred Stock were not included in the calculation of diluted loss per common share for the three months and six months ended June 30, 2010, because the Company reported a net loss. For the three months ended June 30, 2011 and 2010, common stock equivalents, primarily options, totaling approximately 669,000 shares and 429,000 shares, respectively, were excluded from the calculation of diluted earnings/(loss) per share, as their impact would be anti-dilutive.  The diluted earnings per share for the for the three and six months ended June 30, 2011 and 2010 also excludes the impact of approximately 612,000 shares potentially issuable under the warrant issued as part of the Preferred Share issuance (see Note 10).  For the six months ended June 30, 2011 and 2010, common stock equivalents, primarily options, totaling approximately 505,000 shares and 429,000 shares, respectively, were excluded from the calculation of diluted earnings/(loss) per share, as their impact would be anti-dilutive.

The following table sets forth the number of shares used in the calculation of both basic and diluted earnings/ (loss) per common share for the three and six months ended June 30, 2011 and 2010:

	For the three months ending,
	June 30, 2011			June 30, 2010
	Net			Net
(dollars in thousands except per share data)	Income		Shares	Loss		Shares
Net income / (loss)	$	954		$	(5,835)
Dividends and accretion on preferred stock	370			3,809
Net income / (loss) applicable to common shareholders	$	584		$	(9,644)
Weighted average shares outstanding			25,050,584			11,250,989
Basic income / (loss) per common share	$	0.02		$	(0.86)
Dilutive effect of share-based compensation awards, common stock warrants, and convertible perpetual preferred stock			1,201,482			-
Weighted average diluted shares outstanding			26,252,066			11,250,989
Diluted income / (loss) per common share	$	0.02		$	(0.86)

	For the six months ended
	June 30, 2011			June 30, 2010
	Net			Net
(dollars in thousands except per share data)	Income		Shares	Loss		Shares
Net income / (loss)	$	1,476		$	(7,174)
Dividends and accretion on preferred stock	735			4,160
Net loss applicable to common shareholders	$	741		$	(11,334)
Weighted average shares outstanding			25,042,531			9,492,421
Basic loss per common share	$	0.03		$	(1.19)
Dilutive effect of share-based compensation awards, common stock warrants, and convertible perpetual preferred stock			1,209,039			-
Weighted average diluted shares outstanding			26,251,570			9,492,421
Diluted loss per common share	$	0.03		$	(1.19)