(5) Earnings per Common Share:

Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under stock options, computed using the treasury stock method.


	Three months ended					Nine months ended
	September 30,					Septmeber 30,
	2011		2010			2011		2010
Basic
Net income (loss)	$	1,193	$	(1,393	)	$	2,469	$	(1,616	)
Preferred stock dividends and discount accretion		293		289			881		867

Net income (loss) available to common shareholders	$	900	$	(1,682	)	$	1,588	$	(2,483	)

Weighted average common shares outstanding		7,707,917		7,707,917			7,707,917		7,707,917

Basic earnings per common share	$	0.12	$	(0.22	)	$	0.21	$	(0.32	)


Diluted
Net income (loss)	$	1,193	$	(1,393	)	$	2,469	$	(1,616	)
Preferred stock dividends and discount accretion		293		289			881		867

Net income (loss) available to common shareholders	$	900	$	(1,682	)	$	1,588	$	(2,483	)

Weighted average common shares outstanding for basic earnings per common share		7,707,917		7,707,917			7,707,917		7,707,917
Add: Dilutive effects of assumed exercises of stock options		—		—			—		—

Average shares and dilutive potential common shares outstanding		7,707,917		7,707,917			7,707,917		7,707,917


Diluted earnings per common share	$	0.12	$	(0.22	)	$	0.21	$	(0.32	)

Stock options for 29,500 common shares and warrants for 469,312 common shares were not considered in computing diluted earnings per common share for the three and nine-month periods ended September 30, 2011 and September 30, 2010 because they were anti-dilutive.