4. Earnings Per Share

6 Months Ended

Jun. 30, 2013

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,
	2013						2012
				Common						Common
Dollars in thousands,		Income		Shares		Per		Income		Shares		Per
except per share amounts		(Numerator)		(Denominator)		Share		(Numerator)		(Denominator)		Share
Net income	$	1,217					$	913
Less preferred stock dividends		(194	)					(194	)
Basic EPS	$	1,023		7,438,401	$	0.14	$	719		7,425,472	$	0.10
Effect of dilutive securities:
Stock options		—		7,568				—		2,330
Series 2011 convertible
preferred stock		120		1,499,071				120		1,500,000
Series 2009 convertible
preferred stock		74		674,545				—		—
Diluted EPS	$	1,217		9,619,585	$	0.13	$	839		8,927,802	$	0.09

	For the Six Months Ended June 30,
	2013						2012
				Common						Common
Dollars in thousands,		Income		Shares		Per		Income		Shares		Per
except per share amounts		(Numerator)		(Denominator)		Share		(Numerator)		(Denominator)		Share
Net income	$	3,010					$	2,611
Less preferred stock dividends		(388	)					(388	)
Basic EPS	$	2,622		7,435,344	$	0.35	$	2,223		7,425,472	$	0.30
Effect of dilutive securities:
Stock options		—		7,496				—		1,023
Series 2011 convertible
preferred stock		240		1,499,533				240		1,500,000
Series 2009 convertible
preferred stock		148		674,545				148		674,545
Diluted EPS	$	3,010		9,616,918	$	0.31	$	2,611		9,601,040	$	0.27

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, 2013 and 2012 totaled 170,500 shares and 282,980 shares, respectively. Our anti-dilutive convertible preferred shares totaled 674,545 for the quarter ended June 30, 2012.