Earnings per share

Basic earnings per share of common stock (“EPS”) is calculated by dividing net income (loss) attributable to common stock by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share incorporates the treasury stock method, and is calculated by dividing net income (loss) attributable to common stock by the weighted average number of shares of common stock and potential common stock equivalents outstanding during the period, if dilutive. Potential common stock equivalents include incremental shares of common stock issuable upon the exercise of stock options and employee stock awards. Income attributable to common stock is calculated as net income less dividends paid on the Series A Preferred Stock. The Company declared and paid cash dividends of $931 and $1,862 ($.5781 per share) for each of the each of the three and six months ended June 30, 2011 and 2010.

The following is the calculation of basic and diluted weighted average shares outstanding and earnings per share of common stock for the periods indicated:


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2011		2010			2011		2010
Net income (loss)	$	2,214	$	(889	)	$	2,062	$	5,225
Preferred stock dividends		931		931			1,862		1,862

Income (loss) attributable to common stock	$	1,283	$	(1,820	)	$	200	$	3,363

Weighted average shares:
Weighted average shares — basic		11,189,472		11,116,476			11,182,021		11,111,092
Dilution effect of stock options outstanding at the end of period		21,559		—			17,548		—

Weighted average shares — diluted		11,211,031		11,116,476			11,199,569		11,111,092


Income (loss) per common share:
Basic	$	0.11	$	(0.16	)	$	0.02	$	0.30

Diluted	$	0.11	$	(0.16	)	$	0.02	$	0.30

The following options and unvested restricted shares, which could be potentially dilutive in future periods, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive for the periods indicated:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2011		2010		2011		2010

Anti-dilutive shares		32,109		82,360		37,918		93,529