Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 4. EARNINGS PER SHARE

The computations of basic and diluted earnings per share follow:

				2012						2011
				Common						Common
Dollars in thousands,		Income		Shares		Per		Income		Shares		Per
except per share amounts		(Numerator)		(Denominator)		Share		(Numerator)		(Denominator)		Share
Net income	$	997					$	1,936
Less preferred stock dividends		(194	)					(74	)
Basic EPS	$	803		7,425,472	$	0.11	$	1,862		7,425,472	$	0.25
Effect of dilutive securities:
Stock options				1,261						-
Series 2009 convertible
preferred stock		74		674,545				74		674,545
Series 2011 convertible
preferred stock		120		1,500,000				-		10,053
Diluted EPS	$	997		9,601,278	$	0.10	$	1,936		8,110,070	$	0.24

	For the Nine Months Ended September 30,
				2012						2011
				Common						Common
Dollars in thousands,		Income		Shares		Per		Income		Shares		Per
except per share amounts		(Numerator)		(Denominator)		Share		(Numerator)		(Denominator)		Share
Net income	$	3,608					$	2,594
Less preferred stock dividends		(583	)					(223	)
Basic EPS	$	3,025		7,425,472	$	0.41	$	2,371		7,425,472	$	0.32
Effect of dilutive securities:
Stock options				1,081						-
Series 2009 convertible
preferred stock		223		674,545				-		-
Series 2011 convertible
preferred stock		360		1,500,000				-		3,388
Diluted EPS	$	3,608		9,601,098	$	0.38	$	2,371		7,428,860	$	0.32

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 September 30, 2012 and 2011 totaled 289,380 shares and 312,180 shares, respectively. Our anti-dilutive convertible preferred shares totaled 674,545 for the nine months ended September 30, 2011.