Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2012

Earnings (Loss) Per Common Share — Basic earnings (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding. Diluted earnings (loss) per common share is computed by dividing applicable net income (loss) by the weighted average number of common shares outstanding and any dilutive potential common shares and dilutive stock options. It is assumed that all dilutive stock options are exercised at the beginning of each period and that the proceeds are used to purchase shares of the Company’s common stock at the average market price during the period. Per share information for 2011 has been retroactively adjusted to give effect to a 5% stock dividend effective December 16, 2011. Net income (loss) per common share and net income (loss) per common share, assuming dilution, were computed as follows:

	Three Months Ended
	March 31,
	2012			2011
	(Dollars in thousands,
	except per share amounts)

Net income (loss) per common share, basic
Numerator - net income (loss) available to common shareholders	$	(719	)	$	136
Denominator
Weighted average common shares issued and outstanding	4,152,294			4,171,625
Net income (loss) per common share, basic	$	(.17	)	$	.03

Net income (loss) per common share, assuming dilution
Numerator - net income (loss) available to common shareholders	$	(719	)	$	136
Denominator
Weighted average common shares issued and outstanding	4,152,294			4,171,625
Effect of dilutive stock options	—			—
Total shares	4,152,294			4,171,625
Net income (loss) per common share, assuming dilution	$	(.17	)	$	.03

- Definition

The entire disclosure for earnings per share.

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COMMUNITY FIRST BANCORP 10-Q