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Earnings per Share

9 Months Ended

Sep. 30, 2011

Earnings per Share [Abstract]

Earnings per Share

(11)

Earnings per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common shares that were outstanding during the year. The calculations of basic and diluted earnings per share are as follows:


		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2011				2010				2011				2010
Basic earnings per common share:
Net income		$	1,515,639			$	1,422,202			$	3,877,750			$	2,698,436
Less:
Preferred stock dividends			378,187				378,187				1,130,360				1,130,360
Accretion of discount on preferred stock			119,119				119,119				357,356				357,356

Net income available to common shareholders		$	1,018,333			$	924,896			$	2,390,034			$	1,210,720

Basic earnings per share		$	0.22			$	0.20			$	0.51			$	0.26

Diluted earnings per common share:
Net income		$	1,515,639			$	1,422,202			$	3,877,750			$	2,698,436
Less:
Preferred stock dividends			378,187				378,187				1,130,360				1,130,360
Accretion of discount on preferred stock			119,119				119,119				357,356				357,356

Net income available to common shareholders		$	1,018,333			$	924,896			$	2,390,034			$	1,210,720

Average shares outstanding			4,652,994				4,652,994				4,652,994				4,652,994
Effect of dilutive stock options			—				—				—				—

Average shares outstanding including dilutive stock options			4,652,994				4,652,994				4,652,994				4,652,994

Diluted earnings per share		$	0.22			$	0.20			$	0.51			$	0.26

Under the treasury stock method, outstanding stock options are dilutive when the average market price of our Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when our Company has a loss from continuing operations available to common shareholders. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period.

The following options to purchase shares during the three and nine months ended September 30, 2011 and 2010, respectively, were not included in the respective computations of diluted earnings per share because the exercise price of the option, when combined with the effect of the unamortized compensation expense, was greater than the average market price of the common shares and were considered anti-dilutive.


		Three Months Ended September 30,								Nine Months Ended September 30,
		2011				2010				2011				2010
Anti-dilutive shares - option shares			260,466				298,382				260,466				298,382
Anti-dilutive shares - warrant shares			276,090				276,090				276,090				276,090