Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share (EPS), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period.  Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or warrants, stock appreciation rights settled in stock or restricted stock awards, result in the issuance of common stock which shares in the earnings of the Company.  There was no difference in the net income used in the calculation of basic earnings per share and diluted earnings per share for the three and six month periods ended June 30, 2012 or 2011.

A reconciliation of the numerators and denominators of the basic and diluted EPS computations is as follows:

Basic Earnings Per share	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(In thousands, except share and per share amounts)	2012			2011			2012			2011
Net Income	$	1,709		$	1,773		$	3,422		$	3,361
Less: Preferred stock dividends and accretion	(87		)	(99		)	(175		)	(198		)
Income available to common shareholders	$	1,622		$	1,674		$	3,247		$	3,163
Weighted average shares outstanding	9,592,045			9,516,110			9,581,172			9,495,890
Basic earnings per share	$	0.17		$	0.18		$	0.34		$	0.33

Diluted Earnings Per share	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(In thousands, except share and per share amounts)	2012			2011			2012			2011
Net Income	$	1,709		$	1,773		$	3,422		$	3,361
Less: Preferred stock dividends and accretion	(87		)	(99		)	(175		)	(198		)
Income available to common shareholders	$	1,622		$	1,674		$	3,247		$	3,163
Weighted average shares outstanding	9,592,045			9,516,110			9,581,172			9,495,890
Effect of dilutive stock options	26,931			24,505			22,884			26,774
Weighted average shares of common stock and common stock equivalents	9,618,976			9,540,615			9,604,056			9,522,664
Diluted earnings per share	$	0.17		$	0.18		$	0.34		$	0.33

During the six-month periods ended June 30, 2012 and 2011, options and TARP warrants to purchase 377,129 and 518,116 shares of common stock, respectively, were not factored into the calculation of dilutive stock options because they were anti-dilutive.