EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

6. EARNINGS (LOSS) PER SHARE

     The earnings (loss) per share is calculated under the two-class method. The two-class method is an earnings allocation formula that determines earnings (loss) per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. A participating security is an instrument that may participate in undistributed earnings with common stock. The Company has issued restricted stock and preferred stock that qualifies as a participating security. Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period.

Diluted earnings (loss) per share is computed in the same manner as basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if certain shares issuable upon exercise of options and warrants, conversion of preferred stock, and non-vested restricted stock were included, unless those additional shares would have been anti-dilutive. For the diluted earnings (loss) per share computation, the treasury stock method is applied and compared to the two-class method and whichever method results in a more dilutive impact is utilized to calculate diluted earnings per share. The two-class method was utilized to calculate diluted earnings per share for the quarter ended June 30, 2011.

On May 19, 2011, Bancorp implemented the Reverse Stock Split. All share and per share related amounts have been restated to reflect the Reverse Stock Split. The following table reconciles the numerator and denominator of the basic and diluted earnings (loss) per share computations for the quarters ended June 30, 2011, and 2010:

(Dollars and shares in thousands, except per share amounts)	Three months ended
	June 30, 2011		June 30, 2010
Net income (loss)	$	4,634	$	(3,849	)
Less: Net income (loss) allocated to participating securities-basic:
Preferred stock		274		-
Non-vested restricted stock		63		-
Net income (loss) available to common stock holders-basic		4,297		(3,849	)
Add: Net income (loss) allocated per two-class method-diluted:
Stock options and Class C warrants		15		-
Net income (loss) available to common stockholders-diluted	$	4,312	$	(3,849	)
Weighted average common shares outstanding-basic		19,006		18,425
Common stock equivalents from:
Stock options		24		-
Class C warrants		995		-
Weighted average common shares outstanding-diluted		20,025		18,425
Basic earnings (loss) per share	$	0.23	$	(0.20	)
Diluted earnings (loss) per share	$	0.22	$	(0.20	)
Common stock equivalent shares excluded due to anti-dilutive effect		189		639
(Dollars and shares in thousands, except per share amounts)	Six months ended
	June 30, 2011		June 30, 2010
Net income (loss)	$	9,739	$	(4,737	)
Less: Net income (loss) allocated to participating securities-basic:
Preferred stock		576		-
Non-vested restricted stock		143		-
Net income (loss) available to common stock holders-basic		9,020		(4,737	)
Add: Net income (loss) allocated per two-class method-diluted:
Stock options and Class C warrants		32		-
Net income (loss) available to common stockholders-diluted	$	9,052	$	(4,737	)
Weighted average common shares outstanding-basic		18,983		15,939
Common stock equivalents from:
Stock options		23		-
Class C warrants		976		-
Weighted average common shares outstanding-diluted		19,982		15,939
Basic earnings (loss) per share	$	0.48	$	(0.30	)
Diluted earnings (loss) per share	$	0.45	$	(0.30	)
Common stock equivalent shares excluded due to anti-dilutive effect		192		639