EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2012

EARNINGS (LOSS) PER SHARE [Abstract]

Earnings and weighted-average shares outstanding used in the computation of basic and diluted earnings per share

 

2.   EARNINGS (LOSS) PER SHARE

The Company utilizes the two-class method to report its earnings (loss) per share.  The two-class method is an earnings (loss) allocation formula that determines earnings (loss) per share for each class of common stock according to dividends declared and participation rights in undistributed earnings (loss).  The Company's Certificate of Incorporation, as amended, states that Class B common shares are entitled to dividends at least 5% greater than dividends paid on Class A common shares, resulting in the two-class method of computing earnings (loss) per share.  In computing earnings (loss) per share, the Company has allocated dividends declared to Class A and Class B based on amounts actually declared for each class of stock and 5% more of the undistributed earnings (loss) has been allocated to Class B shares than to the Class A shares on a per share basis.  Basic earnings (loss) per common share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding during the period.  Diluted earnings (loss) per common share, for each class of common stock, is computed by dividing net earnings (loss) by the weighted-average number of common shares and potential common shares outstanding during the period.  There were no potential common shares outstanding during the three or six months ended June 30, 2012 or 2011 which would have had a dilutive effect on earnings (loss) per share.

The earnings (loss) and weighted-average shares outstanding used in the computation of basic and diluted earnings (loss) per share are as follows (dollars in thousands, except share and per share data):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012		2011			2012		2011
Numerator:
Net earnings (loss)	$	1,463	$	(574	)	$	2,339	$	2,670
Less Dividends:
Class A		131		131			261		261
Class B		680		666			1,355		1,333
Undistributed earnings (loss)	$	652	$	(1,371	)	$	723	$	1,076
Undistributed earnings (loss) allocation - basic and diluted:
Class A undistributed earnings (loss)	$	115	$	(244	)	$	128	$	192
Class B undistributed earnings (loss)		537		(1,127	)		595		884
Total undistributed earnings (loss)	$	652	$	(1,371	)	$	723	$	1,076
Net earnings (loss) allocation - basic and diluted:
Class A allocated earnings (loss)	$	246	$	(113	)	$	389	$	453
Class B allocated earnings (loss)		1,217		(461	)		1,950		2,217
Net earnings (loss)	$	1,463	$	(574	)	$	2,339	$	2,670
Denominator:
Weighted-average shares outstanding:
Class A common share - basic and diluted		2,174,912		2,174,912			2,174,912		2,174,912
Class B common share - basic and diluted		9,677,141		9,582,610			9,654,473		9,554,354
Earnings (loss) per share:
Class A common share - basic and diluted	$	0.11	$	(0.05	)	$	0.18	$	0.21
Class B common share - basic and diluted	$	0.13	$	(0.05	)	$	0.20	$	0.23