Basic net earnings per share is computed by dividing net earnings by the weighted average common shares outstanding for the quarter and nine months ended September 30, 2011 and 2010, respectively. Diluted net earnings per share reflect the potential dilution that could occur if the Company's potential common stock was issued. At September 30, 2011 and 2010, respectively, the Company had no options issued or outstanding, and therefore, no dilutive effect to consider for the diluted earnings per share calculation.

A reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for the quarter and nine months ended September 30, 2011 and 2010 is presented below.

				Quarter ended September 30,				Nine months ended September 30,
(Dollars in thousands, except share and per share data)				2011		2010		2011		2010
Basic and diluted:
	Net earnings		$	1,367	$	1,244	$	4,373	$	4,468
	Weighted average common shares outstanding			3,642,738		3,642,701		3,642,735		3,642,896
		Earnings per share	$	0.38	$	0.34	$	1.20	$	1.23