Earnings Per Common Share

12 Months Ended

Dec. 31, 2011

Earnings Per Common Share [Abstract]

Earnings Per Common Share

Note 2 – Earnings Per Common Share

Basic earnings per common share (“EPS”) is calculated as net income available to common shareholders divided by the weighted average number of common shares outstanding.  Diluted EPS is computed using the weighted average number of common shares outstanding, increased by the assumed conversion of the Company’s stock options, unless anti-dilutive.

The components of basic and diluted earnings per common share for the years ended December 31, 2011, 2010 and 2009 are as follows:

	2011			2010			2009
Basic Earnings per Common Share:
Net income	$	11,372,000		$	8,761,000		$	8,214,000
Preferred stock dividends		(3,576,000	)		(2,240,000	)		(1,821,000	)
Net income available to common stockholders	$	7,796,000		$	6,521,000		$	6,393,000
Weighted average common shares outstanding		6,042,015			6,092,670			6,131,314
Basic earnings per common share	$	1.29		$	1.07		$	1.04

Diluted Earnings per Common Share:
Net income available to common stockholders	$	7,796,000	$	6,521,000	$	6,393,000
Effect of assumed preferred stock conversion		-		-		-
Net income applicable to diluted earnings per share	$	7,796,000	$	6,521,000	$	6,393,000
Weighted average common shares outstanding		6,042,015		6,092,670		6,131,314
Dilutive potential common shares:
Assumed conversion of stock options		10,515		24,057		35,879
Adjustment for fair value for stock awards		1,741		-		-
Assumed conversion of preferred stock		-		-		-
Diluted weighted average common shares outstanding		6,054,271		6,116,727		6,167,193
Diluted earnings per common share	$	1.29	$	1.07	$	1.04

The following shares were not considered in computing diluted earnings per share for the years ended December 31, 2011, 2010 and 2009 because they were anti-dilutive:

	2011		2010		2009
Stock options to purchase shares of common stock		202,970		202,970		202,970
Average dilutive potential common shares associated with convertible preferred stock		1,998,652		1,122,833		1,036,046