Three months ended
June 30,

Six months ended
June 30,

(in thousands)

2012

2011

2012

2011

Net income

$

5,321

$

2,771

$

9,252

$

5,571

Average number of common shares outstanding

15,986

15,922

15,982

15,891

Effect of dilutive stock options

61

32

63

98

Average number of common shares out standingused to calculate diluted earnings per share

16,047

15,954

16,045

15,989

Options excluded from diluted earnings per share because the effect of these options was antidilutive

1,020

826

944

795