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Earnings Per Share
 6 Months Ended
Jun. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share
8. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three and six months ended June 30, 2013, 37,500 shares issuable pursuant to outstanding stock options were excluded from the diluted earnings per share calculations because the strike prices associated with the options exceeded the market price of the Corporation’s common stock thus making the shares anti-dilutive. For the three and six months ended June 30, 2012, 75,500 shares issuable pursuant to outstanding stock options were excluded from the diluted earnings per share calculations because the strike prices associated with the options exceeded the market price of the Corporation’s common stock thus making the shares anti-dilutive.

 

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested stock awards are participating securities.

The computation of basic and diluted earnings per share is shown below (in thousands except per share data):

 

     Three months ended
June 30,		     Six months ended
June 30,		  
     2013     2012     2013     2012  

Net income per consolidated statements of income

    $ 2,951      $ 4,336      $ 7,248      $ 8,683   

Net earnings allocated to participating securities

      (15 )      (17 )      (34 )      (34 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net earnings allocated to common stock

    $ 2,936      $ 4,319      $ 7,214      $ 8,649   
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per common share computation:

         

Distributed earnings allocated to common stock

    $ 2,053      $ 2,044      $ 4,107      $ 4,084   

Undistributed earnings allocated to common stock

      883        2,275        3,107        4,565   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net earnings allocated to common stock

    $ 2,936      $ 4,319      $ 7,214      $ 8,649   
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average common shares outstanding, including shares considered participating securities

      12,510        12,440        12,502        12,421   

Less: Average participating securities

      (57 )      (46 )      (53 )      (43 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares

      12,453        12,394        12,449        12,378   
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per common share

    $ 0.24      $ 0.35      $ 0.58      $ 0.70   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per common share computation:

         

Net earnings allocated to common stock

    $ 2,936      $ 4,319      $ 7,214      $ 8,649   
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average common shares outstanding for basic earnings per common share

      12,453        12,394        12,449        12,378   

Add: Dilutive effects of assumed exercises of stock options

      1        3        1        3   
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares and dilutive potential common shares

      12,454        12,397        12,450        12,381   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per common share

    $ 0.24      $ 0.35      $ 0.58      $ 0.70