Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2011

Earnings (Loss) per Share

Earnings (Loss) per Share

Earnings (Loss) per Share

The Company reports both basic and diluted earnings per share. Basic earnings per share is determined by dividing net income by the average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net income by the average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents. Potential dilutive common shares related to outstanding stock options and restricted stock are determined using the treasury stock method.  However, diluted earnings per share is not adjusted for potentially dilutive common shares when a net loss occurs because conversion of potentially dilutive common shares is antidilutive.  There were 107,682 dilutive shares that were excluded from the Company’s diluted earnings per share calculations at December 31, 2010 because of this antidilutive impact.

		Years ended December 31,
(dollars in thousands)	2011				2010
Net income (loss)	$		1,025	$		(1,963	)
Average number of common shares outstanding			8,772,331			8,897,520
Effect of dilution of restricted stock			160,462			—
Average number of common shares outstanding used to calculate diluted earnings per common share			8,932,793			8,897,520