6. Earnings per share

6 Months Ended

Jun. 30, 2012

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,
	2012		2011		2012		2011
	(In thousands, except per share data)
Net income	$	508	$	1,442	$	1,716	$	3,267
Shares:
Basic:  Weighted average common shares outstanding		9,084		9,388		9,256		9,417
Add:  Dilutive effect of outstanding options and restricted stock as determined by the treasury stock method		105		279		101		259
Diluted:  Weighted average common and common equivalent shares outstanding		9,189		9,667		9,357		9,676
Net income per common share:
Basic	$	0.06	$	0.15	$	0.19	$	0.35
Diluted	$	0.06	$	0.15	$	0.18	$	0.34

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, 2012 and 2011, there were 507,125 and 163,750, respectively, potentially dilutive shares consisting of stock options that were excluded from the calculation of earnings per diluted share.  For the six months ended June 30, 2012 and 2011, there were 585,125 and 163,750, respectively, potentially dilutive shares consisting of stock options, and nonvested restricted stock (for the six months ended June 30, 2011 only), that were excluded from the calculation of earnings per diluted share.