NET INCOME PER SHARE

3 Months Ended

Mar. 31, 2013

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 4:   NET INCOME PER SHARE

Basic net income per share is computed on the basis of weighted average outstanding common shares.  Diluted net income per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, if dilutive. The numerator of the diluted net income per share calculation is increased by the allocation of net income and dividends declared to nonvested shares, if the impact is dilutive.

We have determined that certain nonvested share awards (also referred to as restricted stock awards) issued by the company are participating securities because they have non-forfeitable rights to dividends. Accordingly, basic net income per share is calculated under the two-class method calculation. In determining the number of diluted shares outstanding, we are required to disclose the more dilutive earnings per share result between the treasury stock method calculation and the two-class method calculation.

The computation of basic and diluted net income per share for the three months ended March 31, 2013 and 2012 is as follows:

	Three Months Ended March 31, 2013						Three Months Ended March 31, 2012
	Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount		Net Income (Numerator)			Weighted Average Common Shares Outstanding (Denominator)	Per Share Amount
	(in thousands, except per share data)
Net income	$	3,937					$	2,039
Less: amounts allocated to nonvested shares	(39		)				(6		)
Basic net income available to common stockholders	3,898			35,600	$	0.11	2,033			35,478	$	0.06
Effect of dilutive securities:
Stock options				947			—			969
Add back: amounts allocated to nonvested shares	39						6			—
Less: amounts re-allocated to nonvested shares	(39		)				(6		)	—
Diluted net income available to common stockholders	$	3,898		36,547	$	0.11	$	2,033		36,447	$	0.06

For the three months ended March 31, 2013 and 2012, weighted-average outstanding stock options totaling approximately 2.6 million and 3.2 million, respectively, were anti-dilutive and therefore not included in the computation of diluted net income per share.