7. Earnings per share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Text Block]

7. 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
	March 31,
	2012		2011
	(In thousands, except per share data)
Net income	$	1,208	$	1,825
Shares:
Basic:  Weighted average common shares outstanding		9,427		9,446
Add:  Dilutive effect of outstanding options and restricted stock as determined by the treasury stock method		105		256
Diluted:  Weighted average common and common equivalent shares outstanding		9,532		9,702
Net income per common share:
Basic	$	0.13	$	0.19
Diluted	$	0.13	$	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 March 31, 2012 and 2011, there were 597,750 and 149,750, respectively, potentially dilutive shares consisting of stock options and nonvested restricted stock (for the three months ended March 31, 2011 only), that were excluded from the calculation of earnings per diluted share.