Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 9
Common Stock and Earnings per Share

The table below shows activity in the outstanding shares of the Company’s common stock during 2012.

	2012
Shares outstanding at January 1	10,357,930
10% stock dividend issued December 14, 2012	1,040,984
Issuance of common stock:
Issued under stock-based compensation plan	28,370
Stock options/SARs exercised	36,547
Shares outstanding at December 31	11,463,831

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Under the treasury stock method, outstanding stock options and stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the option price during a period. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period. Anti-dilutive shares are those option shares with exercise prices in excess of the current market value.

The calculations of basic and diluted earnings per share are as follows:

	December 31,
(In thousands except share and per share data)	2012		2011		2010
Basic
Net income	$	23,303	$	23,009	$	20,310
Weighted-average common shares outstanding		11,378,216		11,326,968		11,295,693
Basic earnings per share	$	2.05	$	2.03	$	1.80
Diluted
Net income	$	23,303	$	23,009	$	20,310
Weighted-average common shares outstanding		11,378,216		11,326,968		11,295,693
Effect of dilutive restricted stock, stock
options and SARs		178,998		148,652		135,873
Weighted-average common shares outstanding
assuming dilution
		11,557,214		11,475,620		11,431,566
Diluted earnings per share	$	2.02	$	2.01	$	1.78

All share and per share data have been restated to give effect to the 10% stock dividend issued on December 14, 2012.