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 September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Income (numerator):
Net income (loss) – basic	$	495	$	(2,355	)	$	7,935	$	7,221

Weighted average shares (denominator):
Weighted average shares – basic		39,011,555		34,190,192			38,980,971		33,656,726
Dilution effect of share-based compensation, treasury method		21,258		—	(1)		21,760		79,393

Weighted average shares – diluted		39,032,813		34,190,192			39,002,731		33,736,119

Net (loss) income per share:
Basic	$	0.01	$	(0.07	)	$	0.20	$	0.21

Diluted	$	0.01	$	(0.07	)	$	0.20	$	0.21

(1)	Approximately 25,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the three months ended September 30, 2012.