Earnings Per Share

3 Months Ended

Mar. 31, 2013

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
(Dollars in thousands, except per share data)	March 31
	2013		2012
Net income	$	2,598	$	1,607
Preferred dividends	497		463
Net income attributable to common stock	2,101		1,144
Net income allocated to common stockholders:
Distributed	93		92
Undistributed	1,927		1,047
	$	2,020	$	1,139
Weighted-average basic common and participating shares outstanding	9,605,103		9,202,476
Less: weighted average participating restricted shares outstanding	373,646		46,000
Weighted-average basic shares outstanding	9,231,457		9,156,476
Basic net income per share	0.22		0.12
Weighted-average basic common and participating shares outstanding	9,605,103		9,202,476
Add: share-based options and stock warrant	113,927		—
	9,719,030		9,202,476
Less: weighted average participating restricted shares outstanding	373,646		46,000
Weighted-average dilutive shares outstanding	9,345,384		9,156,476
Dilutive net income per share	0.22		0.12
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
Common stock warrant	—		513,113