3. Earnings Per Common Share

We report basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities unless their impact is antidilutive. The following table provides a reconciliation of the numerators and denominators of our basic and diluted earnings per share (dollars in thousands, except per-share amounts).


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Income (numerator):
Net income — basic	$	7,073	$	2,087	$	16,526	$	7,201


Weighted average shares (denominator):
Weighted average shares — basic		28,440,909		21,357,682		28,398,152		21,139,089
Dilution effect of share-based compensation, treasury method		211,302		126,783		229,922		126,705

Weighted average shares — diluted		28,652,211		21,484,465		28,628,074		21,265,794


Net income per share:
Basic	$	0.25	$	0.10	$	0.58	$	0.34

Diluted	$	0.25	$	0.10	$	0.58	$	0.34