Earnings Per Share

9 Months Ended

Sep. 30, 2011

NOTE 3 — EARNINGS PER SHARE

The Company provides dual presentation of Basic and Diluted earnings per share. Basic earnings per share utilizes net income as reported as the numerator and the actual average shares outstanding as the denominator. Diluted earnings per share includes any dilutive effects of options, warrants, and convertible securities.

There are no convertible securities that would affect the denominator in calculating basic and diluted earnings per share. The following tables set forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.


	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Weighted average common shares outstanding		1,894,207			1,768,362			1,847,945			1,761,292

Average treasury stock shares		(189,530	)		(189,530	)		(189,530	)		(189,530	)


Weighted average common shares and common stock equivalents used to calculate basic earnings per share		1,704,677			1,578,832			1,658,415			1,571,762

Additional common stock equivalents (stock options) used to calculate diluted earnings per share		—			—			—			964


Weighted average common shares and common stock equivalents used to calculate diluted earnings per share		1,704,677			1,578,832			1,658,415			1,572,726

The average share price for the quarter-ended September 30, 2011 was $17.23 while the year-to-date price was $17.36. The options to purchase 90,528 shares of common stock at prices ranging from $17.55 to $40.24 were outstanding during the three and nine months ended September 30, 2011 but were not included in the computation of diluted earnings per share as they were anti-dilutive due to the strike price being greater than the average market price.