EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2011

EARNINGS PER SHARE

EARNINGS PER SHARE

10. 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. Prior period EPS figures have been presented in accordance with this accounting guidance.

The following is a reconciliation of earnings per share for December 31, 2011, 2010 and 2009:

For the Years Ended December 31,	2011			2010			2009
(In thousands, except per share data)
Net Income	$	10,359		$	9,166		$	8,763
Less: Dividends paid on and earnings allocated to participating securities	(299		)	(243		)	(175		)
Income attributable to common stock	$	10,060		$	8,923		$	8,588
Weighted average common shares outstanding, including participating securities	6,712			6,308			6,224
Less: weighted average participating securities	(193		)	(170		)	(127		)
Weighted average common shares outstanding	6,519			6,138			6,097
Basic earnings per common share	$	1.54		$	1.45		$	1.41
Income attributable to common stock	$	10,060		$	8,923		$	8,588
Weighted average common shares outstanding	6,519			6,138			6,097
Weighted average common equivalent shares outstanding	1			1			4
Weighted average common and equivalent shares outstanding	6,520			6,139			6,101
Diluted earnings per common share	$	1.54		$	1.45		$	1.41

There were 52,123 options outstanding at December 31, 2011 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 December 31, 2011, were not included in the computation of diluted earnings per share because the assumed conversion of the trust preferred securities was antidilutive.