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Earnings Per Share
 12 Months Ended
Dec. 31, 2012
Earnings Per Share  
Earnings Per Share

18. Earnings Per Share

        The Company computes earnings per share using the two-class method, an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings, when that method results in a more dilutive effect than the Treasury method. The Company's unvested grants of restricted stock contain non-forfeitable rights to dividends, should any be declared, and are treated as participating securities and included in the computation of earnings per share.

        Net income available to common shareholders and the weighted average number of common shares used to compute basic and diluted earnings per share was as follows:

 
   For the Year Ended December 31,  
(in thousands, except per share data)
   2012   2011   2010  

Numerator:

                    

Net income

   $ 34,262   $ 18,298   $ 16,122  

Less: Net income allocated to participating securities

     (282 )   (97 )   —  
               

Net income available to common shareholders

   $ 33,980   $ 18,201   $ 16,122  
               

Denominator:

                    

Weighted average common shares outstanding

     20,391     20,151     19,883  

Weighted average dilutive securities

     781     842     899  
               

Weighted average common shares outstanding, diluted

     21,172     20,993     20,782  
               

Income per common share, basic

   $ 1.67   $ 0.90   $ 0.81  

Income per common share, diluted

     1.60     0.87     0.78  

        Potential common shares related to the assumed exercise of stock options are not included in the denominator of the diluted earnings per share calculation if the inclusion of such shares would either be anti-dilutive or if the exercise prices of those common stock equivalents were greater than the average market price of the Company's common stock for the period. For the years ended December 31, 2012 and 2011, outstanding stock options of 229,128 and 89,240, respectively, were excluded as common stock equivalents from the diluted earnings per share calculation. Additionally, for the years ended December 31, 2012 and 2011, potential common shares related to the unvested portion of performance awards of 9,718 and 51,879, respectively, were excluded from the denominator of the diluted earnings per share calculation as the underlying performance obligation was not met as of the end of those periods.