EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

3.	EARNINGS PER SHARE

Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. The basic and diluted calculations differ as a result of the dilutive effect of stock options and time lapse restricted shares included in diluted earnings per share, but excluded from basic earnings per share. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. A reconciliation of weighted average shares outstanding is as follows:

	Three months ended March 31,
(In thousands except per share data)	2013			2012
Net income available for stockholders:	$	1,449		$	1,632
Less: Dividends paid
Common Stock		(1,141	)		(755	)
Undistributed income	$	308		$	877

Basic shares outstanding:
Common Stock		35,549			35,532
Restricted shares of common stock		1,246			1,097
		36,795			36,629
Diluted shares outstanding:
Common Stock		35,549			35,532
Dilutive effect of stock based awards		208			190
		35,757			35,722
Restricted shares of common stock		1,246			1,097
		37,003			36,819

Inclusion of all participating securities in the computation of Earnings Per Share (EPS) under the two-class method has no impact on the EPS amounts reported.

The effect of the Company’s stock options as shown below have been excluded from the computation of diluted earnings per share for the following periods, as their effect would have been anti-dilutive:

	Three months ended March 31,
(in thousands)	2013	2012
Stock options	42	42

- Definition

The entire disclosure for earnings per share.

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