Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

(2) Earnings Per Share

Basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share is computed based on the weighted average number of shares outstanding plus the effects of dilutive stock options and warrants outstanding during the year. Basic and diluted earnings per share are calculated as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(Dollars in thousands except per share amounts)
Weighted average shares outstanding used in Basic Earnings per Common Share		7,884,749		7,363,161		7,878,119		7,343,023
Dilutive effect of incentive stock options and warrants		185		—		105		—
Weighted average shares outstanding used in Diluted Earnings Per Common Share		7,884,934		7,363,161		7,878,224		7,343,023
Net Income	$	712	$	1,243	$	1,842	$	2,574
Dividends and accretion on preferred stock		318		318		637		637
Income Available to Common Shareholders	$	394	$	925	$	1,205	$	1,937
Basic Earnings Per Common Share	$	0.05	$	0.12	$	0.15	$	0.26
Diluted Earnings Per Common Share	$	0.05	$	0.12	$	0.15	$	0.26

Options for 197,000 common shares and common stock warrants for 561,343 shares were considered in computing diluted earnings per common share for the three and six month periods ended June 30, 2011. Stock options for 2,500 common shares were considered dilutive and the remaining stock options and the stock warrants were antidilutive for the three and six month periods ended June 30, 2011. Stock options for 198,000 common shares and common stock warrants of 561,343 were considered in computing diluted earnings per common share for the three and six month periods ended June 30, 2010. All stock options and warrants were antidilutive for the three and six month periods ended June 30, 2010.