Net Income per Share

9 Months Ended

Sep. 30, 2012

Net Income per Share [Abstract]

Net Income per Share

NOTE 3.  Net Income per Share

Basic net income per common share is calculated as net income available to common shareholders divided by the weighted average common shares outstanding during the reporting period.  Net income available to common shareholders is calculated as net income less accrued dividends and discount accretion related to preferred stock. 

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options and warrants were issued during the reporting period utilizing the Treasury stock method.

The following is a reconciliation of the calculation of basic and diluted income per share.  

	For the three months ended September 30,				For the nine months ended September 30,
(In thousands, except per share amounts)	2012		2011		2012		2011
Net income	$	1,196	$	1,086	$	3,077	$	1,950
Less: Preferred stock dividends and discount accretion		397		386		1,195		1,164
Income available to common shareholders	$	799	$	700	$	1,882	$	786
Weighted average common shares outstanding - Basic		7,473		7,413		7,465		7,301
Plus: Potential dilutive common stock equivalents		309		368		321		418
Weighted average common shares outstanding - Diluted		7,782		7,781		7,786		7,719
Net income per common share - Basic	$	0.11	$	0.09	$	0.25	$	0.11
Net income per common share - Diluted		0.10		0.09		0.24		0.10
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive		499		385		505		358

The "potential dilutive common stock equivalents" shown in the table above includes the impact of 764,778 common stock warrants issued to the U.S. Department of Treasury under the Capital Purchase Program in December 2008, utilizing the Treasury stock method.  These warrants were dilutive for the three and nine months ended September 30, 2012 and 2011.