Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 4. EARNINGS PER SHARE

The computations of basic and diluted earnings per share follow:

	For the Three Months Ended June 30,
	2012						2011
Dollars in thousands, except per share amounts	Income (Numerator)			Common Shares (Denominator)	Per Share		Income (Numerator)			Common Shares (Denominator)	Per Share
Net income	$	913					$	905
Less preferred stock dividends		(194	)					(74	)
Basic EPS	$	719		7,425,472	$	0.10	$	831		7,425,472	$	0.11
Effect of dilutive securities:
Stock options		-		2,330				-		-
Series 2011 convertible preferred stock		120		1,500,000				-		-
Diluted EPS	$	839		8,927,802	$	0.09	$	831		7,425,472	$	0.11

	For the Six Months Ended June 30,
	2012						2011
Dollars in thousands, except per share amounts	Income (Numerator)			Common Shares (Denominator)	Per Share		Income (Numerator)			Common Shares (Denominator)	Per Share
Net income	$	2,610					$	657
Less preferred stock dividends		(388	)					(148	)
Basic EPS	$	2,222		7,425,472	$	0.30	$	509		7,425,472	$	0.07
Effect of dilutive securities:
Stock options		-		1,023				-		-
Series 2009 convertible preferred stock		148		674,545				-		-
Series 2011 convertible preferred stock		240		1,500,000				-		-
Diluted EPS	$	2,610		9,601,040	$	0.27	$	509		7,425,472	$	0.07

Stock option grants and the convertible preferred shares are disregarded in this computation if they are determined to be anti-dilutive. Our anti-dilutive stock options at June 30, 2012 and 2011 totaled 282,980 shares and 312,180 shares, respectively. Our anti-dilutive convertible preferred shares totaled 674,545 for the quarter ended June 30, 2012, and for the quarter ended and six months ended June 30, 2011.