Net Income Per Common Share

9 Months Ended

Sep. 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 EndedSeptember 30				Nine Months EndedSeptember 30
	2012		2011		2012		2011
Weighted average common basic shares outstanding	15,668,129		15,704,837		15,632,817		15,776,883
Effect of dilutive stock options and restricted stock units	260,556		329,493		250,718		339,253
Weighted average common diluted shares outstanding	15,928,685		16,034,330		15,883,535		16,116,136
Net income per share:
Basic	$	0.15	$	0.38	$	0.56	$	0.91
Diluted	$	0.15	$	0.37	$	0.55	$	0.89

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