Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share

Earnings Per Share

The Company calculates earnings per share using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share separately for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company has determined that its outstanding non-vested restricted stock awards are participating securities.

The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share were as follows:

	Three Months Ended
(Dollars in thousands, except per share data)	March 31
	2012		2011
Net income	$	1,607	$	950
Preferred dividends	463		432
Net income attributable to common stock	1,144		518
Net income allocated to common stockholders:
Distributed	92		91
Undistributed	1,047		424
	$	1,139	$	515
Weighted-average basic common and participating shares outstanding	9,202,476		9,169,528
Less: weighted average participating restricted shares outstanding	46,000		60,433
Weighted-average basic shares outstanding	9,156,476		9,109,095
Basic net income per share	$	0.12	$	0.06
Weighted-average basic common and participating shares outstanding	9,202,476		9,169,528
Add: share-based options and stock warrant	—		—
	9,202,476		9,169,528
Less: weighted average participating restricted shares outstanding	46,000		60,433
Weighted-average dilutive shares outstanding	9,156,476		9,109,095
Dilutive net income per share	$	0.12	$	0.06
Weighted-average shares of potentially dilutive instruments that are not included in the dilutive share calculation due to anti-dilutive effect:
Compensation plan-related stock options	33,600		39,600
Common stock warrant	513,113		513,113