Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The Company calculates basic 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. Diluted earnings per share are calculated using the more dilutive of the two-class method and the treasury stock method.

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

	Three Months Ended				Six Months Ended
(Dollars in thousands, except per share data)	June 30				June 30
	2012		2011		2012		2011
Net income	$	1,753	$	1,106	$	3,360	$	2,056
Preferred dividends	471		440		934		872
Net income attributable to common stock	1,282		666		2,426		1,184
Net income allocated to common stockholders:
Distributed	92		93		184		185
Undistributed	1,134		568		2,181		991
	$	1,226	$	661	$	2,365	$	1,176
Weighted-average basic common and participating shares outstanding	9,596,919		9,178,201		9,399,697		9,173,888
Less: weighted average participating restricted shares outstanding	432,343		59,934		239,171		60,182
Weighted-average basic shares outstanding	9,164,576		9,118,267		9,160,526		9,113,706
Basic net income per share	0.14		0.07		0.26		0.13
Weighted-average basic common and participating shares outstanding	9,596,919		9,178,201		9,399,697		9,173,888
Add: share-based options and stock warrant	—		—		—		—
	9,596,919		9,178,201		9,399,697		9,173,888
Less: weighted average participating restricted shares outstanding	432,343		59,934		239,171		60,182
Weighted-average dilutive shares outstanding	9,164,576		9,118,267		9,160,526		9,113,706
Dilutive net income per share	0.14		0.07		0.26		0.13
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	29,714		32,848		31,657		32,625
Common stock warrant	513,113		513,113		513,113		513,113