Earnings Per Share

9 Months Ended

Sep. 30, 2011

Note J – Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share data)	2011		2010		2011		2010

Distributed earnings allocated to common stock	$	5,015	$	5,237	$	15,045	$	15,711
Undistributed earnings allocated to common stock		6,479		3,733		15,756		13,164
Net earnings allocated to common shareholders	$	11,494	$	8,970	$	30,801	$	28,875

Average shares outstanding		15,003		15,496		15,165		15,646

Effect of dilutive securities:
Employee stock options		68		56		77		64

Shares for diluted earnings per share		15,071		15,552		15,242		15,710

Basic earnings per share	$	0.77	$	0.58	$	2.03	$	1.85
Diluted earnings per share	$	0.76	$	0.58	$	2.02	$	1.84

Options to purchase 255,000 and 248,000 shares of common stock at an exercise price between $30.38 and $40.88 and between $29.02 and $40.88 per share were outstanding during the third quarter of 2011 and the third quarter of 2010, respectively, but were not included in the computation of diluted earnings per share because the options' exercise price was greater than the average market price of the common shares and therefore, the effect would have been anti-dilutive.