EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

6. EARNINGS 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 a similar manner to basic earnings per share except that the denominator of weighted average common shares is increased to include the number of additional common shares that would have been outstanding if shares issuable upon exercise of options and warrants were included in earnings per share. In addition, under the two-class method, net income, the numerator, is adjusted to reflect the allocation of net income to participating securities such as preferred stock and non-vested restricted stock. 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 three and six months ended June 30, 2012.

       The following table reconciles the numerator and denominator of the basic and diluted earnings per share computations for the periods ended June 30, 2012, and 2011:

(Dollars and shares in thousands, except per share amounts)	Three months ended
	June 30, 2012		June 30, 2011
Net income	$	6,034	$	4,634
Less: Net income allocated to participating securities-basic:
Preferred stock		357		274
Non-vested restricted stock		60		63
Net income available to common stock holders-basic		5,617		4,297
Add: Net income allocated per two-class method-diluted:
Stock options and Class C warrants		22		15
Net income available to common stockholders-diluted	$	5,639	$	4,312
Weighted average common shares outstanding -basic		19,082		19,006
Common stock equivalents from:
Stock options		26		24
Class C warrants		1,148		995
Weighted average common shares outstanding -diluted		20,256		20,025
Basic earnings per share	$	0.29	$	0.23
Diluted earnings per share	$	0.28	$	0.22
Common stock equivalent shares excluded due to anti-dilutive effect		167		189
(Dollars and shares in thousands, except per share amounts)	Six months ended
	June 30, 2012		June 30, 2011
Net income	$	11,823	$	9,739
Less: Net income allocated to participating securities-basic:
Preferred stock		700		576
Non-vested restricted stock		134		143
Net income available to common stock holders-basic		10,989		9,020
Add: Net income allocated per two-class method-diluted:
Stock options and Class C warrants		43		32
Net income available to common stockholders-diluted	$	11,032	$	9,052
Weighted average common shares outstanding -basic		19,060		18,983
Common stock equivalents from:
Stock options		24		23
Class C warrants		1,077		976
Weighted average common shares outstanding -diluted		20,161		19,982
Basic earnings per share	$	0.58	$	0.48
Diluted earnings per share	$	0.55	$	0.45
Common stock equivalent shares excluded due to anti-dilutive effect		180		192