EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

15. EARNINGS (LOSS) PER SHARE

     Earnings per share is calculated under the two-class method. The two-class method is an earnings allocation formula that determines earnings 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 per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period.

Diluted earnings per share is computed in the same manner as basic earnings 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 unvested restricted stock were included, unless those additional shares would have been anti-dilutive. For the diluted earnings 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 year ended December 31, 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 per share computations for the year ended December 31, 2011, 2010, and 2009:

(Dollars and shares in thousands, except per share amounts)	Year ended December 31,
	2011		2010		2009
Net income (loss)	$	33,777	$	3,225	$	(91,213	)
Less: Net income (loss) allocated to participating securities-basic:
Preferred stock		1,998		367		-
Unvested restricted stock		477		37		(728	)
Net income (loss) available to common stock holders-basic		31,302		2,821		(90,485	)
Add: Net income (loss) allocated per two-class method-diluted:
Stock options and Class C warrants		108		12		-
Net income (loss) available to common stockholders-diluted	$	31,410	$	2,833	$	(90,485	)
Weighted average common shares outstanding-basic		19,007		17,460		3,102
Common stock equivalents from:
Stock options		20		6		-
Class C Warrants		913		593		-
Weighted average common shares outstanding-diluted		19,940		18,059		3,102
Basic earnings (loss) per share	$	1.65	$	0.16	$	(29.15	)
Diluted earnings (loss) per share	$	1.58	$	0.16	$	(29.15	)
Common stock equivalent shares excluded due to anti-dilutive effect		199		441		377