Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

EARNINGS PER SHARE

NOTE 5: EARNINGS PER SHARE

Basic earnings per share ("EPS") is computed based on the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the treasury stock method and reflects the potential dilution that could occur from the exercise of stock options, and warrants and the amortized portion of unvested stock awards. Stock options and unvested stock awards for which the exercise or the grant price exceeds the average market price over the period have an anti-dilutive effect on EPS and, accordingly, are excluded from the calculation. Treasury shares are not deemed outstanding for calculations. There were no anti-dilutive stock warrants outstanding, 149,561 anti-dilutive stock options outstanding, and no anti-dilutive stock awards at June 30, 2011. There were 186,311anti-dilutive stock warrants, 160,084 anti-dilutive stock options outstanding and 22,326 anti-dilutive stock awards at June 30, 2010. See Note 12 for a discussion of stock warrants issued in conjunction with Preferred shares issued to the U.S. Treasury Department as part of the CPP. The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended							Six Months Ended
	June 30, 2011							June 30, 2011
(In thousands, except per-share data)	Income		Shares		Amount			Income		Shares		Amount
Basic EPS
Income available to common stockholders	$	1,134		2,670	$	0.43		$	1,994		2,667	$	0.75
Effect of potential dilutive common stock equivalents– stock options, restricted shares and warrants		—		20		(.01	)		—		26		(.01	)
Diluted EPS
Income available to common stockholders after assumed conversions	$	1,134		2,690	$	0.42		$	1,994		2,693	$	0.74

	Three Months Ended						Six Months Ended
	June 30, 2010						June 30, 2010
(In thousands, except per-share data)	Income		Shares		Amount		Income		Shares		Amount
Basic EPS
Income (loss) available to common stockholders	$	792		2,632	$	0.30	$	1,313		2,626	$	0.50
Effect of potential dilutive common stock equivalents– stock options, restricted shares and warrants		—		—		—		—		—		—
Diluted EPS
Income (loss) available to common stockholders after assumed conversions	$	792		2,632	$	0.30	$	1,313		2,626	$	0.50