EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2012

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 11.  EARNINGS PER SHARE

Details of the computation of earnings per share are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in thousands except per share data)
Basic earnings per share computation:
Net income	$	4,020	$	4,250	$	10,103	$	8,744
Less income allocated to participating awards	26		56		74		120
Net income applicable to common shareholders	$	3,994	$	4,194	$	10,029	$	8,624
Weighted average common shares outstanding	11,567		11,467		11,551		11,461
Basic earnings per share	$	0.35	$	0.37	$	0.87	$	0.75
Diluted earnings per share computation:
Net income	$	4,020	$	4,250	$	10,103	$	8,744
Less income allocated to participating awards	26		56		74		120
Net income applicable to common shareholders	$	3,994	$	4,194	$	10,029	$	8,624
Weighted average common shares outstanding	11,567		11,467		11,551		11,461
Assumed exercise of stock options	23		25		24		26
Assumed satisfaction of RSA conditions	16		1		13		—
Assumed satisfaction of PSI conditions	—		40		—		40
Weighted average common shares outstanding	11,606		11,533		11,588		11,527
Diluted earnings per share	$	0.34	$	0.36	$	0.87	$	0.75

For the three months ended September 30, 2012 and 2011, 133,085 and 186,753 shares, respectively, of certain stock-based awards were excluded from the calculation of diluted earnings per share as they were anti-dilutive. For the nine months ended September 30, 2012 and 2011, 149,285 and 175,225 shares, respectively, of certain stock-based awards were excluded from the calculation of diluted earnings per share as they were anti-dilutive.