Earnings Per Share

9 Months Ended

Sep. 30, 2011

NOTE 4. EARNINGS PER SHARE

The computations of basic and diluted earnings per share follow:

	For the Three Months Ended September 30,
	2011							2010
				Common							Common
Dollars in thousands,	Income			Shares		Per		Income			Shares		Per
except per share amounts	(Numerator)			(Denominator)		Share		(Numerator)			(Denominator)		Share
Net income	$	1,936						$	(127	)
Less preferred stock dividends		(74	)						(74	)

Basic EPS	$	1,862			7,425,472	$	0.25	$	(201	)		7,425,472	$	(0.03	)

Effect of dilutive securities:
Stock options		-			-				-			2,483
Series 2011 convertible preferred stock		-			10,053				-			-
Series 2009 convertible preferred stock		74			674,545				-			-

Diluted EPS	$	1,936			8,110,070	$	0.24	$	(201	)		7,427,955	$	(0.03	)

	For the Nine Months Ended September 30,
	2011							2010
				Common							Common
Dollars in thousands,	Income			Shares		Per		Income			Shares		Per
except per share amounts	(Numerator)			(Denominator)		Share		(Numerator)			(Denominator)		Share
Net income	$	2,594						$	(2,885	)
Less preferred stock dividends		(223	)						(223	)

Basic EPS	$	2,371			7,425,472	$	0.32	$	(3,108	)		7,425,472	$	(0.42	)

Effect of dilutive securities:
Stock options		-			-				-			950
Series 2011 convertible preferred stock		-			3,388				-			-
Series 2009 convertible preferred stock		-			-				-			-

Diluted EPS	$	2,371			7,428,860	$	0.32	$	(3,108	)		7,426,422	$	(0.42	)

Stock option grants and the conversion of preferred stock are disregarded in this computation if they are determined to be anti-dilutive. Our anti-dilutive stock options at September 30, 2011 and 2010 totaled 312,180 shares. Our anti-dilutive convertible preferred shares totaled 674,545 shares for the nine months ended September 30, 2011 and for the quarter and nine months ended September 30, 2010.