Net Income Per Share

3 Months Ended

Mar. 31, 2012

Net Income Per Share

NOTE 9. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average shares outstanding during the reporting period. Diluted net income per share is computed by dividing net income by the combination of all dilutive common share equivalents, comprised of shares issuable under the Corporation’s share-based compensation plans, and the weighted-average shares outstanding during the reporting period.

Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of share-based awards, the amount of compensation expense, if any, for future service that the Corporation has not yet recognized, and the amount of estimated tax benefits that would be recorded in additional paid-in capital when share-based awards are exercised, are assumed to be used to repurchase common stock in the current period.

	Three Months Ended March 31,
	2012						2011
	Net Income		Weighted- Average Shares		Per Share Amount		Net Income		Weighted- Average Shares		Per Share Amount
Basic net income per share:	$	14,371					$	5,461
Preferred stock dividends and discount accretion		1,135						988
Net income available to common stockholders	$	13,236		28,582,616	$	0.46	$	4,473		25,605,571	$	0.17
Effect of dilutive stock options and warrants				172,097						157,807
Diluted net income per share:
Net income available to common stockholders	$	13,236		28,754,713	$	0.46	$	4,473		25,763,378	$	0.17

Stock options to purchase 967,987 and 1,014,352 shares for the three months ended March 31, 2012, and 2011, respectively, were not included in the earnings per share calculation because the exercise price exceeded the average market price.