Earnings Per Common Share

9 Months Ended

Sep. 30, 2011

Basic net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the reporting periods. Diluted net income available to common shareholders per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The numerators of the basic net income per share computations are the same as the numerators of the diluted net income per common share computations for all the periods presented. Weighted average shares outstanding for the three and nine months ended September 30, 2011 excludes 161,334 shares of unvested restricted stock. Weighted average shares outstanding for the three and nine months ended September 30, 2010 excludes 15,000 shares of unvested restricted stock. A reconciliation of the denominator of the basic net income per common share computations to the denominator of the diluted net income per common share computations is as follows:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2011	2010	2011	2010
Basic EPS denominator:
Weighted average number of common shares outstanding	19,527,855	16,129,640	17,858,777	16,129,640
Dilutive effect arising from assumed exercise of stock options	—	—	—	—
Diluted EPS denominator	19,527,855	16,129,640	17,858,777	16,129,640

For the three months ended September 30, 2011 and 2010, net income (loss) for determining net income (loss) per common share was reported as net income (loss) less the dividend on preferred stock. During the quarter and nine months ended September 30, 2011, there were 356,113 warrants and stock options that were not considered dilutive because the exercise prices exceeded the average market price per share. These non-dilutive shares had exercise prices ranging from $3.84 to $19.07 per share. Unvested shares of restricted stock and all other common stock equivalents were excluded from the determination of diluted earnings (loss) per share for the nine months ended September 30, 2011 and the three and nine months ended September 30, 2010 due to the Company's loss position for those periods.