Basic net earnings per share is computed by dividing net earnings by the weighted average common shares outstanding for the quarters ended March 31, 2012 and 2011, respectively. Diluted net earnings per share reflect the potential dilution that could occur upon exercise of securities or other rights for, or convertible into, shares of the Company's common stock. At March 31, 2012 and 2011, respectively, the Company had no such securities or rights 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 ended March 31, 2012 and 2011 is presented below.

				Quarter ended March 31,
(Dollars in thousands, except share and per share data)				2012		2011
Basic and diluted:
	Net earnings		$	1,465	$	1,549
	Weighted average common shares outstanding			3,642,738		3,642,728
		Earnings per share	$	0.40	$	0.43