Earnings Per Common Share

6 Months Ended

Jun. 30, 2011

Earnings Per Common Share [Abstract]

Earnings Per Common Share

Note 6 – Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2011 and 2010.

(in thousands, except share and per share data)	Three months ended June 30,				Six months ended June 30,
	2011		2010		2011		2010
	Restated				Restated
Numerator:
Income available to common shareholders	$	27,489	$	19,715	$	48,221	$	39,042
Denominator:
Denominator for basic earnings per share (weighted average common shares outstanding)		15,398,919		15,114,846		15,398,925		14,998,810
Effect of dilutive options and warrants		674		-		2,581		-
Denominator for diluted earnings per share (weighted average common shares outstanding adjusted for the effect of dilutive options and warrants)		15,399,593		15,114,846		15,401,506		14,998,810
Earnings per common share:
Basic earnings per common share	$	1.79	$	1.30	$	3.13	$	2.60
Diluted earnings per common share	$	1.79	$	1.30	$	3.13	$	2.60

As of June 30, 2011 and 2010, options to purchase 75,545 and 82,700 common shares, respectively, were outstanding under the Park National Corporation 2005 Incentive Stock Option Plan (the "2005 Plan"). A warrant to purchase 227,376 common shares was outstanding at both June 30, 2011 and 2010 as a result of Park's participation in the U.S. Treasury's Capital Purchase Program (the "CPP").  Additionally, warrants to purchase an aggregate of 35,992 common shares (the "December 2010 Warrants") were outstanding at June 30, 2011 as a result of the issuance of common stock and warrants on December 10, 2010.  Warrants to purchase an aggregate of 175,900 common shares (the "October 2009 Warrants") were outstanding at June 30, 2010 as a result of the issuance of common stock and warrants on October 30, 2009.  All October 2009 Warrants were exercised or expired as of October 30, 2010 and thus had no impact on the periods ended June 30, 2011.

The common shares represented by the options and the December 2010 Warrants for the three and six months ended June 30, 2011, totaling a weighted average of 139,492 and 144,514, respectively, and the common shares represented by the options, the CPP warrant and the October 2009 warrants for the three and six months ended June 30, 2010, totaling a weighted average of 718,482 and 849,526, respectively, were not included in the computation of diluted earnings per common share because the respective exercise prices exceeded the market value of the underlying common shares such that their inclusion would have had an anti-dilutive effect. The warrant to purchase 227,376 common shares issued under the CPP was not included in the three month and six month weighted average of 139,492 and 144,514 at June 30, 2011, as the dilutive effect of this warrant was 674 and 2,581 shares of common stock for the three and six month periods ended June 30, 2011.  The exercise price of the CPP warrant to purchase 227,376 common shares is $65.97.