Earnings Per Share

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements [Abstract]

Note 16. Earnings Per Share

The following table provides detail for basic earnings per share (EPS) and diluted earnings per share for the years ended December 31, 2011, 2010 and 2009:

	Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount
For the year ended December 31, 2011
Net income as reported	$	12,364,000
Less dividends and amortization of premium on preferred stock		1,208,000
Basic EPS: Income available to common shareholders		11,156,000		9,788,610	$	1.14
Effect of dilutive securities: incentive stock options and nonvested restricted stock				9,619
Diluted EPS: Income available to common shareholders plus assumed conversions	$	11,156,000		9,798,229	$	1.14
For the year ended December 31, 2010
Net income as reported	$	12,116,000
Less dividends and amortization of premium on preferred stock		1,348,000
Basic EPS: Income available to common shareholders		10,768,000		9,760,760	$	1.10
Effect of dilutive securities: incentive stock options				4,726
Diluted EPS: Income available to common shareholders plus assumed conversions	$	10,768,000		9,765,486	$	1.10
For the year ended December 31, 2009
Net income as reported	$	13,042,000
Less dividends and amortization of premium on preferred stock		1,161,000
Basic EPS: Income available to common shareholders		11,881,000		9,721,172	$	1.22
Effect of dilutive securities: incentive stock options				12,072
Diluted EPS: Income available to common shareholders plus assumed conversions	$	11,881,000		9,733,244	$	1.22

All earnings per share calculations have been made using the weighted average number of shares outstanding during the period. The dilutive securities are incentive stock options granted to certain key members of Management and warrants granted to the U.S. Treasury under the Capital Purchase Program. The dilutive number of shares has been calculated using the treasury method, assuming that all granted options and warrants were exercisable at the end of each period. The following table presents the number of options and warrants outstanding as of December 31, 2011, 2010 and 2009 and the amount which are above or below the strike price:

	Outstanding	In-the-Money	Out-of-the-Money
As of December 31, 2011
Incentive stock options	51,000	9,000	42,000
Warrants issued to U.S. Treasury	225,904	-	225,904
Total dilutive securities	276,904	9,000	267,904
As of December 31, 2010
Incentive stock options	55,500	13,500	42,000
Warrants issued to U.S. Treasury	225,904	-	225,904
Total dilutive securities	281,404	13,500	267,904
As of December 31, 2009
Incentive stock options	55,500	13,500	42,000
Warrants issued to U.S. Treasury	225,904	-	225,904
Total dilutive securities	281,404	13,500	267,904