Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Note 13:  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:

(Dollars in thousands, except per share data)	Three Months Ended June 30				Six Months Ended June 30
	2011		2010		2011		2010
Net income	$	1,106	$	1,272	$	2,056	$	2,125
Preferred dividends		440		439		872		876
Net income attributable to common stock		666		833		1,184		1,249
Net income allocated to common stockholders:
Distributed		93		92		185		183
Undistributed		568		734		991		1,056
	$	661	$	826	$	1,176	$	1,239
Weighted-average basic common and participatingshares outstanding		9,178,201		9,139,390		9,173,888		9,142,849
Less: weighted average participating restricted shares outstanding		59,934		70,044		60,182		73,503
Weighted-average basic shares outstanding		9,118,267		9,069,346		9,113,706		9,069,346
Basic net income per share	$	.07	$	.09	$	.13	$	.14
Weighted-average basic common and participating shares outstanding		9,178,201		9,139,390		9,173,888		9,142,849
Add: share-based options and stock warrant		-		-		-		-
		9,178,201		9,139,390		9,173,888		9,142,849
Less: weighted average participating restricted shares outstanding		59,934		70,044		60,182		73,503
Weighted-average dilutive shares outstanding		9,118,267		9,069,346		9,113,706		9,069,346
Dilutive net income per share	$	.07	$	.09	$	.13	$	.14
Weighted-average shares of potentially dilutiveinstruments that are not included in the dilutive share calculation due to anti-dilutive effect:
Compensation plan-related stock options		32,848		38,941		32,625		38,274
Common stock warrant		513,113		513,113		513,113		513,113