Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

2.  EARNINGS PER SHARE

Basic earnings per share represent income available to shareholders divided by the weighted average number of common shares outstanding during the period.  Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential shares had been issued, as well as any adjustment to income that would result from the assumed issuance.  Potential common shares that may be issued by us relate solely to outstanding stock options and are determined using the treasury stock method.

Earnings per common share for the three and six months ended June 30, 2013 and 2012 have been computed based on the following:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(In thousands, except per share data)
Net income applicable to common stock	$	1,584		$	974		$	3,366		$	3,313
Average number of common shares issued		21,464			26,414			21,885			26,578
Less: Average unallocated ESOP shares		(1,181	)		(1,265	)		(1,191	)		(1,275	)
Less: Average ungranted equity incentive plan shares		(7	)		(7	)		(7	)		(7	)
Average number of common shares outstanding used
to calculate basic earnings per common share		20,276			25,142			20,687			25,296
Effect of dilutive stock options		-			16			-			34
Average number of common shares outstanding used
to calculate diluted earnings per common share		20,276			25,158			20,687			25,330
Basic earnings per share	$	0.08		$	0.04		$	0.16		$	0.13
Diluted earnings per share	$	0.08		$	0.04		$	0.16		$	0.13
Antidilutive shares (1)		1,669			1,670			1,665			1,662
___________________
(1) Shares outstanding but not included in the computation of earnings per share because they were anti-dilutive, meaning the exercise price of such options exceeded the market value of the Company’s common stock