6. Earnings per share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Text Block]

6. Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands, except per share data)	2011		2010		2011		2010
Net income	$	1,442	$	1,145	$	3,267	$	1,774
Shares:
Basic:  Weighted average common shares outstanding		9,388		9,394		9,417		9,371
Add:  Dilutive effect of outstanding options and restricted stock as determined by the treasury stock method		279		168		259		172
Diluted:  Weighted average common and common equivalent shares outstanding		9,667		9,562		9,676		9,543
Net income per common share:
Basic	$	0.15	$	0.12	$	0.35	$	0.19
Diluted	$	0.15	$	0.12	$	0.34	$	0.19

Unvested restricted stock is excluded from the calculation of weighted average common shares for basic EPS.  For diluted EPS, weighted average common shares include the impact of unvested restricted stock under the treasury stock method.

For the three months ended June 30, 2011 and 2010, there were 163,750 and 379,750, respectively, potentially dilutive shares consisting of stock options and, in 2010, nonvested restricted stock, that were excluded from the calculation of earnings per diluted share.  For the six months ended June 30, 2011 and 2010, there were 163,750 and 252,250, respectively, potentially dilutive shares consisting of stock options and, in 2010, nonvested restricted stock, that were excluded from the calculation of earnings per diluted share.