Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share

Earnings Per Share

8. 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)	2013			2012
Numerator:
Net income	$	6,960		$	6,210
Less: Net income allocated to participating securities		(62	)		(39	)
Net income available to common shareholders	$	6,898		$	6,171
Denominator:
Weighted average common shares outstanding		20,661			20,300
Weighted average dilutive securities		650			787
Weighted average common shares outstanding, diluted		21,311			21,087
Income per common share, basic	$	0.33		$	0.30
Income per common share, diluted	$	0.32		$	0.29

        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, 2013 and 2012, outstanding stock options of 221,495 and 233,479, respectively, were excluded as common stock equivalents from the diluted earnings per share calculation. Additionally, for the three months ended March 31, 2013, potential common shares related to the unvested portion of performance awards of 16,906 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.