Earnings Per Common Share

3 Months Ended

Mar. 31, 2013

Earnings Per Common Share

5. Earnings Per Common Share

We calculate basic earnings per common share data using the weighted average number of common shares outstanding during the period. Diluted per share data reflects the potential dilution that would occur if common stock equivalents were exercised or converted to common stock but only to the extent that they are considered dilutive to our earnings. The following table is a reconciliation of basic and diluted per share data for the following periods (dollars in thousands, except per share amounts):

	Three Months Ended March 31,
	2013		2012
Basic
Net income	$	1,205	$	3,846
Weighted average shares outstanding		19,093		18,895
Basic earnings per common share	$	0.06	$	0.20
Diluted
Net income	$	1,205	$	3,846
Weighted average shares outstanding		19,093		18,895
Effect of dilutive securities
Stock options		—		3
Restricted stock		190		192
Weighted average common shares and potential dilutive shares		19,283		19,090
Diluted earnings per common share	$	0.06	$	0.20

The diluted EPS calculation excludes the effect of 196,000 share equivalents of outstanding stock options for the three months ended March 31, 2013 and 215,000 share equivalents of outstanding stock options for the three months ended March 31, 2012 because their effect is anti-dilutive.