The following table sets forth the computation of basic and diluted earnings per share (EPS) for the nine months ended September 30, 2012 and 2011:

	Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount
For the nine months ended September 30, 2012
Net income as reported	$	9,459,000
Less dividends and amortization of premium on preferred stock		543,000
Basic EPS: Income available to common shareholders		8,916,000		9,825,719	$	0.91
Effect of dilutive securities: restricted stock				16,894
Diluted EPS: Income available to common shareholders plus assumed conversions	$	8,916,000		9,842,613	$	0.91
For the nine months ended September 30, 2011
Net income as reported	$	9,341,000
Less dividends and amortization of premium on preferred stock		1,027,000
Basic EPS: Income available to common shareholders		8,314,000		9,785,063	$	0.85
Effect of dilutive securities: incentive stock options and restricted stock				10,888
Diluted EPS: Income available to common shareholders plus assumed conversions	$	8,314,000		9,795,951	$	0.85

The following table sets forth the computation of basic and diluted EPS for the quarters ended September 30, 2012 and 2011:

	Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount
For the quarter ended September 30, 2012
Net income as reported	$	3,223,000
Less dividends and amortization of premium on preferred stock		181,000
Basic EPS: Income available to common shareholders		3,042,000		9,824,568	$	0.31
Effect of dilutive securities: restricted stock and warrants				22,814
Diluted EPS: Income available to common shareholders plus assumed conversions	$	3,042,000		9,847,382	$	0.31
For the quarter ended September 30, 2011
Net income as reported	$	3,006,000
Less dividends and amortization of premium on preferred stock		353,000
Basic EPS: Income available to common shareholders		2,653,000		9,791,550	$	0.27
Effect of dilutive securities: incentive stock options and restricted stock				11,843
Diluted EPS: Income available to common shareholders plus assumed conversions	$	2,653,000		9,803,393	$	0.27