Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three and six months ended June 30, 2011, 84,250 shares issuable pursuant to outstanding stock options were excluded from the diluted earnings per share calculations since they were anti-dilutive. For the three and six months ended June 30, 2010, 86,750 shares issuable pursuant to outstanding stock options were excluded from the diluted earnings per share calculations since they were anti-dilutive.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested stock awards are participating securities.

The computation of basic and diluted earnings per share is shown below (in thousands except per share data):

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Basic earnings per common share computation:
Distributed earnings allocated to common stock	$	2,021		$	1,447		$	4,038		$	2,892
Undistributed earnings allocated to common stock		1,558			1,665			3,107			2,371
Net earnings allocated to common stock	$	3,879		$	3,112		$	7,145		$	5,263
Weighted average common shares outstanding, including shares considered participating securities		12,291			9,253			12,277			9,019
Less: Average participating securities		(36	)		(31	)		(37	)		(32	)
Weighted average shares		12,255			9,222			12,240			8,987
Basic earnings per common share	$	0.32		$	0.34		$	0.58		$	0.59
Diluted earnings per common share computation:
Net earnings allocated to common stock	$	3,879		$	3,112		$	7,145		$	5,263
Weighted average common shares outstanding for basic earnings per common share		12,255			9,222			12,240			8,987
Add: Dilutive effects of assumed exercises of stock options		6			9			7			11
Weighted average shares and dilutive potential common shares		12,261			9,231			12,247			8,998
Diluted earnings per common share	$	0.32		$	0.34		$	0.58		$	0.58