EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

4. EARNINGS PER SHARE

Basic earnings per common share are computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share are computed after adjusting the denominator of the basic earnings per share computation for the effects of all dilutive potential common shares outstanding during the period.  The dilutive effects of options, warrants, and their equivalents are computed using the "treasury stock" method.  For the three and six months ended June 30, 2012 and 2011, all 523,076 options and warrants were excluded from the diluted earnings per share calculation because their effect was antidilutive.  All earnings per share calculations have been adjusted to give retroactive effect to the 2-for-1 stock split, effected through a 100% stock dividend, declared by the Board of Directors in May 2011. 

 The calculation of net (loss) income per common share for the three and six months ended June 30, 2012 and 2011 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Basic and diluted:
Net loss	$	(271,000	)	$	(2,734,000	)	$	(1,786,000	)	$	(2,648,000	)
Preferred stock dividends and discount accretion		(183,000	)		(181,000	)		(367,000	)		(362,000	)
Net loss available to common stockholders	$	(454,000	)	$	(2,915,000	)	$	(2,153,000	)	$	(3,010,000	)
Average common shares outstanding		7,422,164			7,412,793			7,422,164			7,406,650
Basic and diluted loss per common share	$	(0.06	)	$	(0.39	)	$	(0.29	)	$	(0.41	)