Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share

Earnings Per Share

9. Earnings Per Share

        The Company computes earnings per share using the two-class method, an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings, when that method results in a more dilutive effect than the Treasury method. The Company's unvested grants of restricted stock contain non-forfeitable rights to dividends, should any be declared, and are treated as participating securities and included in the computation of earnings per share.

        Net income available to common shareholders and the weighted average number of common shares used to compute basic and diluted earnings per share was as follows:

	Three months ended March 31,
(in thousands except per share data)	2012			2011
Numerator:
Net income	$	6,210		$	4,500
Less: Net income allocated to participating securities		(39	)		—
Net income available to common shareholders	$	6,171		$	4,500
Denominator:
Weighted average common shares outstanding		20,300			19,983
Weighted average dilutive securities		787			951
Weighted average common shares outstanding, diluted		21,087			20,934
Income per common share, basic	$	0.30		$	0.23
Income per common share, diluted	$	0.29		$	0.21

        Potential common shares related to the assumed exercise of stock options are not included in the denominator of the diluted earnings per share calculation if the inclusion of such shares would either be anti-dilutive or if the exercise prices of those common stock equivalents were greater than the average market price of the Company's common stock for the period. For the three months ended March 31, 2012 and 2011, outstanding stock options of 233,479 and 90,080, respectively, were excluded as common stock equivalents from the diluted earnings per share calculation. Additionally, for the three months ended March 31, 2011, potential common shares related to the unvested portion of performance awards of 59,755 were excluded from the denominator of the diluted earnings per share calculation as the underlying performance obligation was not met as of the end of the period.