EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER COMMON SHARE

NOTE 5 – EARNINGS PER  COMMON SHARE

Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common stockholders 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 were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.

The following information was used in the computation of EPS on both a basic and diluted basis for the three and six months ended June 30, 2011 and June 30, 2010:

(Dollars in thousands, except per share amounts)
	For the three months ended
	6/30/11			6/30/10
Basic EPS computation:
Net income	$	198		$	273
Preferred stock net accretion		(10	)		(10	)
Preferred stock dividend paid		(55	)		(54	)
Cumulative preferred stock dividend earned		-			-
Net income available to common shareholders	$	133		$	209
Weighted average shares outstanding, basic		864,976			864,976
Basic EPS	$	0.15		$	0.24

Diluted EPS computation:
Net income	$	198		$	273
Preferred stock net accretion		(10	)		(10	)
Preferred stock dividend paid		(55	)		(54	)
Cumulative preferred stock dividend earned		-			-
Net income available to common shareholders	$	133		$	209
Weighted average shares outstanding, assuming dilution		864,976			864,976
Dilutive potential shares		288			400
Diluted EPS	$	0.15		$	0.24

(Dollars in thousands, except per share amounts)

	For the six months ended
	6/30/11			6/30/10
Basic EPS computation:
Net income	$	285		$	516
Preferred stock net accretion		(20	)		(20	)
Preferred stock dividend paid		(109	)		(109	)
Net income available to common stockholders	$	156		$	387
Weighted average shares outstanding, basic		864,976			864,976
Basic EPS	$	0.18		$	0.45

Diluted EPS computation:
Net income	$	285		$	516
Preferred stock net accretion		(20	)		(20	)
Preferred stock dividend paid		(109	)		(109	)
Net income available to common stockholders	$	156		$	387
Weighted average shares outstanding, before dilution		864,976			864,976
Dilutive potential shares		306			307
Weighted average shares outstanding, assuming dilution		865,282			865,283
Diluted EPS	$	0.18		$	0.45