Earnings Per Common Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Common Share

Note 9: Earnings Per Common Share

Basic earnings per common share for the Corporation is computed by dividing net income by the weighted average number of common shares outstanding during the period. Basic earnings per common share excludes any dilutive effect of common stock equivalents.

Diluted earnings per common share for the Corporation is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the dilutive effect of common stock equivalents using the treasury stock method. Average shares of common stock for diluted net income per common share include shares to be issued upon exercise of stock options granted under the Corporation’s stock option plans, restricted stock performance units that may be converted to stock, stock to be issued under the deferred stock compensation plan for non-employee directors and stock to be issued under the stock purchase plan for non-employee advisory directors. For any period in which a loss is recorded, the assumed exercise of stock options, restricted stock performance units that may be converted to stock and stock to be issued under the deferred stock compensation plan and the stock purchase plan would have an anti-dilutive impact on the loss per common share and thus are excluded in the diluted earnings per common share calculation.

The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(In thousands, except per share data)
Numerator for both basic and diluted earnings per common share, net income	$	11,625	$	8,871	$	31,846	$	15,551
Denominator for basic earnings per common share, weighted average common shares outstanding		27,457		27,438		27,454		25,883
Weighted average common stock equivalents		47		33		40		28
Denominator for diluted earnings per common share		27,504		27,471		27,494		25,911
Basic earnings per common share	$	0.42	$	0.32	$	1.16	$	0.60
Diluted earnings per common share		0.42		0.32		1.16		0.60

The average number of exercisable employee stock option awards outstanding that were “out-of-the-money,” whereby the option exercise price per share exceeded the market price per share, and therefore, were not included in the computation of diluted earnings per common share totaled 670,725 and 638,717 for the three months ended September 30, 2011 and 2010, respectively, and 663,492 and 586,668 for the nine months ended September 30, 2011 and 2010, respectively.