Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per common share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding during the year.  Restricted stock shares which have not vested and shares held in Rabbi Trust accounts are not considered to be outstanding for purposes of calculating basic EPS.  Diluted EPS is computed by dividing net income by the average number of common shares outstanding during the year and includes the dilutive effect of stock options, unearned restricted stock awards, and treasury shares held in Rabbi Trust accounts pursuant to deferred compensation plans.  The dilutive common stock equivalents are computed based on the treasury stock method using the average market price for the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2012		2011
	(Dollars in thousands, except per share data)
Net income	$	490	$	472
Weighted-average common shares:
Outstanding	10,697,892		10,650,743
Equivalents (1)	48,506		55,934
Total	10,746,398		10,706,677
Earnings per share:
Basic	$	.05	$	.04
Diluted	.05		.04
Number of anti-dilutive stock options excluded from the diluted earnings per share calculation	451,995		647,995
Weighted-average exercise price of anti-dilutive option shares	$	14.06	$	13.46

(1) Assumes exercise of dilutive stock options, a portion of the unearned restricted stock awards, and treasury shares held in Rabbi Trust accounts.