EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 10 – EARNINGS PER SHARE

Basic earnings per share of common stock are based on the weighted average number of common shares outstanding during the period.  Unvested but issued restricted shares are considered to be outstanding shares and used to calculate the weighted average number of shares outstanding and determine net book value per share.  Diluted earnings per share is calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of outstanding stock options.

Presented below are the calculations for basic and diluted earnings per share:

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands, except per share data – unaudited)	2011		2010		2011		2010
Net income	$	1,226	$	1,208	$	2,511	$	2,089
Weighted average shares outstanding		1,573,954		1,564,297		1,573,393		1,564,214
Effect of dilutive stock options outstanding		927		748		1,078		704
Diluted weighted average shares outstanding		1,574,881		1,565,045		1,574,471		1,564,918
Basic earnings per share	$	0.78	$	0.77	$	1.60	$	1.34
Diluted earnings per share	$	0.78	$	0.77	$	1.59	$	1.33