Net Income Per Common Share

6 Months Ended

Jun. 30, 2012

Net Income Per Common Share

Net Income Per Common Share

3. Net Income Per Common Share

Companies are required to present basic and diluted earnings per share. Basic net income per share is computed by dividing net income by the weighted daily average number of shares of common stock outstanding during the period. Diluted net income per share is based upon the weighted daily average number of shares of common stock outstanding for the period plus dilutive potential common shares, including stock options and restricted stock units using the treasury-stock method.

A reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding is as follows (unaudited):

	Three Months EndedJune 30				Six Months EndedJune 30
	2012		2011		2012		2011
Weighted average common basic shares outstanding	15,665,263		15,834,622		15,614,868		15,812,910
Effect of dilutive stock options and restricted stock units	235,396		329,492		245,800		342,362
Weighted average common diluted shares outstanding	15,900,659		16,164,114		15,860,668		16,155,272
Net income per share:
Basic	$	0.27	$	0.29	$	0.41	$	0.53
Diluted	$	0.26	$	0.28	$	0.40	$	0.52

There were 9,534 anti-dilutive options excluded in the computation of diluted earnings per share for the three and six months ended June 30, 2011 because the options’ exercise prices were greater than the average market price of the common stock. There were no anti-dilutive options for the three and six months ended June 30, 2012.

There are no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share, other than those disclosed.