Note 2 - Earnings Per Common Share

9 Months Ended

Sep. 30, 2011

(2) Earnings Per Common Share

Basic and diluted earnings per common share were computed as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share amounts)	2011		2010		2011		2010
Numerator:
Net income	$	6,333	$	5,482	$	16,622	$	14,532
Denominator:
Basic earnings per common share - weighted-average shares		21,985		21,934		21,978		21,920
Effect of dilutive stock options		89		107		100		103
Diluted earnings per common share - weighted-average shares and assumed conversions		22,074		22,041		22,078		22,023
Basic earnings per common share	$	0.29	$	0.25	$	0.76	$	0.66
Diluted earnings per common share	$	0.29	$	0.25	$	0.75	$	0.66

Options totaling 387,000 and 374,500 shares for the three-month and nine-month periods ended September 30, 2011, respectively, and 335,000 shares for each of the three-month and nine-month periods ended September 30, 2010, were outstanding but were not included in the calculation of diluted earnings per share because including the options in the denominator would be antidilutive, or decrease the number of weighted-average shares, due to their exercise prices exceeding the average market price of the common shares or due to inclusion of average unrecognized compensation expense in the calculation. Performance-based option awards totaling 107,000 shares for the 2010 period were also not included in the calculation of diluted earnings per share because the performance condition was not met. All performance-based options outstanding expired effective December 31, 2010.

Unvested performance unit awards totaling 36,730 shares for each of the three-month and nine-month periods ended September 30, 2011, and 28,530 shares for each of the three-month and nine-month periods ended September 30, 2010, were considered outstanding but were not included in the calculation of diluted earnings per share because inclusion of average unrecognized compensation expense in the calculation would cause the performance units to be antidilutive.