The following shows the weighted average number of shares used in computing earnings per share and the effect on weighted average number of shares of diluted potential common stock. Potential dilutive common stock has no effect on income available to common shareholders. The following table is for the periods indicated:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
(Dollars in thousands)	(Unaudited)
Net Income	$	383		$	884		$	1,516		$	2,131
Less: TARP Dividends		—			(47	)		—			(401	)
Less: TARP Accretion		—			(171	)		—			(204	)
Less: SBLF Dividends		(44	)		(28	)		(133	)		(28	)

Net Income—Common	$	339		$	638		$	1,383		$	1,498


Weighted average number of shares outstanding		2,934,955			2,904,128			2,910,653			2,898,505
Effect of dilutive securities:
Restricted Stock		45,270			45,270			47,150			45,270
Stock Options		6,046			9,068			29,758			9,068
Warrants		—			—			—			—

Weighted average number of shares outstanding and potential dilution		2,986,271			2,958,466			2,987,561			2,952,843


Basic earnings per share*	$	0.12		$	0.22		$	0.48		$	0.52
Diluted earnings per share*	$	0.11		$	0.21		$	0.46		$	0.51

*	Prior periods adjusted for 5 percent stock dividend paid February 29, 2012