COMMUNITY FINANCIAL CORP /VA/ - 10-Q filing on 2012-11-13

Note 3. - Earnings Per Share

3 Months Ended

Sep. 30, 2012

NOTE 3. - EARNINGS PER SHARE

Basic earnings per common share is based on net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share shows the dilutive effect of additional common shares issuable under stock option plans and warrants. Diluted earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares and common share equivalents outstanding. Basic and diluted earnings per common share are computed in the following table.

	For the Three Months Ended
	September 30, 2012			September 30, 2011
		Weighted	Per		Weighted	Per
		Average	Share		Average	Share
	Income	Shares	Amount	Income	Shares	Amount
Basic per common share:
Income available to common stockholders	$153,143	4,361,658	$0.04	$520,980	4,361,658	$0.12
Diluted earnings per common share:
Effect of Dilutive Securities
Options and Warrants	---	316,142		---	---
Income available to common stockholders	$153,143	4,677,800	$0.03	$520,980	4,361,658	$0.12

	For the Six Months Ended
	September 30, 2012			September 30, 2011
		Weighted	Per		Weighted	Per
		Average	Share		Average	Share
	Income	Shares	Amount	Income	Shares	Amount
Basic earnings per share:
Income available to common stockholders	$1,182,588	4,361,658	$0.27	$880,782	4,361,658	$0.20
Diluted earnings per share:
Effect of Dilutive Securities
Options and Warrants	---	82,599		---	38,807
Income available to common stockholders	$1,182,588	4,444,257	$0.27	$880,782	4,400,465	$0.20

During the quarter ended September 30, 2012, 210,400 stock options were excluded in the calculation of earnings per share because they would have been anti-dilutive. During the quarter ended September 30, 2011, 255,900 stock options and 351,194 warrants were excluded in the calculation of earnings per share because they would have been anti-dilutive.

During the six months ended September 30, 2012, 214,150 stock options were excluded in the calculation of earnings per share because they would have been anti-dilutive. During the six months ended September 30, 2011, 210,800 stock options and 351,194 warrants were excluded in the calculation of earnings per share because they would have been anti-dilutive.