Periods ended March 31, (in thousands, except per share amounts)

2013

2012

Net income

$ 940

$ 1,250

Less: Preferred stock dividends declared

(40)

(83)

Less: Undistributed earnings allocated to participating securities

(10)

-

Net income allocated to common stock

$ 890

$ 1,167

Common shares issued

1,709

1,689

Less: Unvested restricted stock awards

(20)

-

Common shares outstanding used to calculate basic earnings per common share

1,689

Add: Diluted effect of unvested restricted stock awards

20

-

Common shares outstanding used to calculate diluted earnings per common share

1,709

-

Earnings per common share (basic and diluted)

0.53

0.69