2. 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 March 31,
	2013			2012
Income (numerator):
Net (loss) income – basic	$	(347	)	$	1,714

Weighted average shares (denominator):
Weighted average shares – basic		38,924,163			33,249,769
Dilution effect of share-based compensation, treasury method		—	(1)		187,913

Weighted average shares – diluted		38,924,163			33,437,682

Net (loss) income per share:
Basic	$	(0.01	)	$	0.05

Diluted	$	(0.01	)	$	0.05

(1)	Approximately 43,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the three months ended March 31, 2013.