Earnings Per Common Share

6 Months Ended

Jun. 30, 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					Six Months Ended
	June 30,					June 30,
	2013		2012			2013		2012
Basic
Net income (loss)	$	463	$	(3,190	)	$	1,667	$	656
Weighted average shares outstanding		19,117		18,991			19,152		18,943
Basic earnings (loss) per common share	$	0.02	$	(0.17	)	$	0.09	$	0.03
Diluted
Net income (loss)	$	463	$	(3,190	)	$	1,667	$	656
Weighted average shares outstanding		19,117		18,991			19,152		18,943
Effect of dilutive securities
Stock options		—		—			—		2
Restricted stock		78		—			149		184
Weighted average common shares and potential dilutive shares		19,195		18,991			19,301		19,129
Diluted earnings (loss) per common share	$	0.02	$	(0.17	)	$	0.09	$	0.03

The diluted earnings per share calculation excludes the effect of 164,000 and 180,000 share equivalents of outstanding stock options for the three and six months ended June 30, 2013, respectively, and 212,000 and 214,000 share equivalents of outstanding stock options for the three and six months ended June 30, 2012, respectively, because their effect is anti-dilutive.