EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER SHARE

4.   EARNINGS PER SHARE

Earnings Per Share - Basic earnings per share is determined by dividing net income for the period by the weighted average number of common shares.  Diluted earnings per share considers the potential effects of the exercise of the outstanding stock options under the Company’s stock option plans.

The following reflects earnings per share calculations for basic and diluted methods:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Net income available to common
shareholders	$	904,834	$	180,124	$	1,639,573	$	678,981
Basic average shares outstanding		1,891,706		1,920,817		1,888,670		1,920,817
Diluted potential common shares:
Stock option equivalents		-		4,440		-		4,088
Diluted average shares outstanding		1,891,706		1,925,257		1,888,670		1,924,905
Basic earnings per share	$	0.48	$	0.09	$	0.87	$	0.35
Diluted earnings per share	$	0.48	$	0.09	$	0.87	$	0.35

Stock options for 4,504 shares of common stock were not considered in computing diluted earnings per share for the three and six month periods ending June 30, 2011, because they were anti-dilutive.  Stock options for 4,500 shares of common stock were not considered in computing diluted earnings per share for the three and six month periods ending June 30, 2010, because they were anti-dilutive.