EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

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				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Net income available to common shareholders	$	871,683	$	653,321	$	2,511,256	$	1,332,302

Basic average shares outstanding		1,892,637		1,888,953		1,890,032		1,910,079

Diluted potential common shares:
Stock option equivalents		-		880		-		2,795
Diluted average shares outstanding		1,892,637		1,889,833		1,890,032		1,912,874

Basic earnings per share	$	0.46	$	0.35	$	1.33	$	0.70

Diluted earnings per share	$	0.46	$	0.35	$	1.33	$	0.70

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