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



	Three Months Ended				Nine Months Ended
(Dollars in thousands, except per share data)	September 30				September 30
	2012		2011		2012		2011
Net income	$	1,794	$	1,330	$	5,154	$	3,386
Preferred dividends	479		448		1,413		1,320
Net income attributable to common stock	1,315		882		3,741		2,066
Net income allocated to common stockholders:
Distributed	92		89		276		273
Undistributed	1,172		789		3,353		1,781
	$	1,264	$	878	$	3,629	$	2,054
Weighted-average basic common and participating shares outstanding	9,599,721		9,184,872		9,452,463		9,177,590
Less: weighted average participating restricted shares outstanding	413,918		51,391		283,450		57,220
Weighted-average basic shares outstanding	9,185,803		9,133,481		9,169,013		9,120,370
Basic net income per share	0.14		0.10		0.40		0.23
Weighted-average basic common and participating shares outstanding	9,599,721		9,184,872		9,452,463		9,177,590
Add: share-based options and stock warrant	1,594		—		—		—
	9,601,315		9,184,872		9,452,463		9,177,590
Less: weighted average participating restricted shares outstanding	413,918		51,391		283,450		57,220
Weighted-average dilutive shares outstanding	9,187,397		9,133,481		9,169,013		9,120,370
Dilutive net income per share	0.14		0.10		0.40		0.23
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	19,600		33,600		30,429		32,954
Common stock warrant	513,113		513,113		513,113		513,113