Common Stock and Earnings per Share

12 Months Ended

Dec. 31, 2013

Common Stock and Earnings per Share [Abstract]

Common Stock and Earnings per Share

Note 9
Common Stock and Earnings per Share

The table below shows activity in the outstanding shares of the Company's common stock during 2013.

	2013
Shares outstanding at January 1	11,463,831
Issuance of common stock:
Issued under stock-based compensation plan	30,407
SARs exercised	27,242
Shares outstanding at December 31	11,521,480

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 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 SAR price during a period. Anti-dilutive shares are those SARs with 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)	2013		2012		2011
Basic
Net income	$	23,497	$	23,303	$	23,009
Weighted average common shares outstanding		11,441,158		11,378,216		11,326,968
Basic earnings per share	$	2.05	$	2.05	$	2.03
Diluted
Net income	$	23,497	$	23,303	$	23,009
Weighted average common shares outstanding		11,441,158		11,378,216		11,326,968
Effect of dilutive restricted stock and SARs		199,581		178,998		148,652
Weighted average common shares outstanding
assuming dilution		11,640,739		11,557,214		11,475,620
Diluted earnings per share	$	2.02	$	2.02	$	2.01

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