Note 4 - Net Income Per Common Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Text Block]

4.  Net Income Per Common Share

Basic net income per common share is determined by dividing net income available to common shareholders by the weighted average total number of common shares issued and outstanding.  Net income available to common shareholders represents net income adjusted for preferred stock dividends including dividends declared, accretion of discounts on preferred stock issuances, and cumulative dividends related to the current dividend period that have not been declared as of the end of the period.

Diluted net income per common share is determined by dividing net income available to common shareholders by the total weighted average number of common shares issued and outstanding plus amounts representing the dilutive effect of stock options outstanding and outstanding warrants. The effects of stock options and outstanding warrants are excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. Dilutive potential common shares are calculated using the treasury stock method.

Net income per common share computations were as follows at March 31, 2012 and 2011.

	Three Months Ended March 31,
(In thousands, except per share data)	2012			2011
Net income, basic and diluted	$	3,309		$	1,045
Preferred stock dividends and discount accretion		(478	)		(472	)
Net income available to common shareholders, basic and diluted	$	2,831		$	573
Average common shares issued and outstanding, basic and diluted		7,447			7,412
Net income per common share, basic and diluted	$	.38		$	.08

Options to purchase 24,049 shares of common stock at March 31, 2012 and 2011 were excluded from the computation of net income per common share because they were antidilutive. There were 223,992 potential common shares associated with a warrant issued to the U.S. Treasury that were excluded from the computation of earnings per common share at March 31, 2012 and 2011 because they were antidilutive.