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EARNINGS PER SHARE
 6 Months Ended
Jun. 30, 2011
EARNINGS PER SHARE  
EARNINGS PER SHARE

2. EARNINGS PER SHARE

 

FASB ASC 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”).  The restricted stock awards and restricted stock units granted by the Company contain nonforfeitable rights to dividends and therefore are considered participating securities.  The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

 

The computation of EPS for the three and six months ended June 30, 2011 and 2010 is as follows:

 

 

 

Three months ended,

 

Six months ended,

 

 

 

June 30,

 

June 30,

 

(In thousands, except per share data)

 

2011

 

2010

 

2011

 

2010

 

Net Income

 

$

2,476

 

$

2,249

 

$

4,636

 

$

4,379

 

Less: Dividends paid on and earnings allocated to participating securities

 

(73

)

(60

)

(137

)

(113

)

Income attributable to common stock

 

$

2,403

 

$

2,189

 

$

4,499

 

$

4,266

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, including participating securities

 

6,563

 

6,297

 

6,488

 

6,289

 

Less: weighted average participating securities

 

(192

)

(171

)

(192

)

(167

)

Weighted average common shares outstanding

 

6,371

 

6,126

 

6,296

 

6,122

 

Basic earnings per common share

 

$

0.38

 

$

0.36

 

$

0.71

 

$

0.70

 

 

 

 

 

 

 

 

 

 

 

Income attributable to common stock

 

$

2,403

 

$

2,189

 

$

4,499

 

$

4,266

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

6,371

 

6,126

 

6,296

 

6,122

 

Weighted average common equivalent shares outstanding

 

1

 

1

 

1

 

1

 

Weighted average common and equivalent shares outstanding

 

6,372

 

6,127

 

6,297

 

6,123

 

Diluted earnings per common share

 

$

0.38

 

$

0.36

 

$

0.71

 

$

0.70

 

 

There were 52,123 and 54,275 options outstanding at June 30, 2011 and June 30, 2010, respectively, that were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. The $16.0 million in convertible trust preferred securities outstanding at June 30, 2011, were not included in the computation of diluted earnings per share because the assumed conversion of the trust preferred securities was antidilutive.