Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

2.             Earnings Per Share

Basic net earnings per share is computed by dividing net earnings applicable to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted net earnings per share is determined using the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options or warrants and vesting of restricted stock.  Common stock equivalents are included in the diluted net earnings per share calculation to the extent these shares are dilutive.  A reconciliation of the numerator and denominator used in the calculation of basic and diluted net earnings per share available to common shareholders is as follows:

	Three months ended					Six months ended
(dollars in thousands,	June 30,					June 30,
except per share amounts)	2011		2010			2011			2010
Net income	$	1,786	$	755		$	3,356		$	1,120
Less:
Dividends on preferred shares	—		(298		)	(200		)	(1,358		)
Net income (loss) available for common shareholders	1,786		457			3,156			(238		)
Weighted average shares:
Basic common shares	14,263,583		10,300,576			14,177,061			8,449,036
Diluted potential common shares related to stock options, restricted stock, and preferred stock	389,183		489,475			386,213			0
Total average common equivalent shares	14,652,766		10,790,051			14,563,274			8,449,036
Basic earnings (loss) per share	$	0.13	$	0.04		$	0.22		$	(0.03	)
Diluted earnings (loss) per share	$	0.12	$	0.04		$	0.22		$	(0.03	)