Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

10. Earnings per Share

Net income per common share reflects application of the two-class method. The Company's Series B preferred shareholders are currently entitled to participate in any dividends paid on shares of our common stock on a pro rata basis with the holders of our common stock. Under the two-class method, during periods of net income, participating securities are allocated a proportional share of net income. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of net income.

Basic EPS excludes dilution for potential common stock issuances and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of restricted stock units and common stock options using the treasury stock method.

The computation of basic and diluted earnings per share is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
($ in thousands, except share data)
Net Income (Loss)	$	(2,778	)	$	3,719		$	4,755		$	5,192
Preferred stockholder dividends		(705	)		(785	)		(2,113	)		(2,585	)
Allocation of earnings to preferred stockholders		—			(528	)		(476	)		(469	)
Net Income (Loss) Attributable to Common Stockholders	$	(3,483	)	$	2,406		$	2,166		$	2,138
Basic:
Weighted-average number of shares outstanding		6,219			6,103			6,222			5,931
Earnings (Loss) per share - basic	$	(0.56	)	$	0.39		$	0.35		$	0.36
Diluted:
Weighted-average number of shares outstanding		6,219			6,103			6,222			5,931
Plus: Incremental shares from assumed conversion of dilutive instruments		—			435			673			535
Adjusted weighted-average number of shares outstanding		6,219			6,538			6,895			6,466
Earnings (Loss) per share - diluted	$	(0.56	)	$	0.37		$	0.31		$	0.33

For the three months ended September 30, 2011 non-participating securities (stock options) representing 248,909 shares of common stock were excluded from the above computations of weighted-average shares for diluted earnings per share because the effect would be antidilutive due to the net loss attributable to common stockholders for the period. For the nine months ended September 30, 2011, there were no non-participating securities (stock options) excluded from the above computations of weighted-average shares for diluted earnings per share. For the three and nine months ended September 30, 2010, non-participating securities (stock options) representing 137,273 shares of common stock were excluded from the above computations of weighted-average shares for diluted earnings per share due to the antidilutive effect of the securities' exercise prices as compared to the average market price of the common shares during the period.