EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2012

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 months ended March 31, 2012 and 2011 is as follows:

	Three months ended,
	March 31,
(In thousands, except per share data)	2012			2011
Net Income	$	2,939		$	2,160
Less: Dividends paid on and earnings allocated to participating securities	(77		)	(65		)
Income attributable to common stock	$	2,862		$	2,095
Weighted average common shares outstanding, including participating securities	8,447			6,413
Less: weighted average participating securities	(224		)	(191		)
Weighted average common shares outstanding	8,223			6,222
Basic earnings per common share	$	0.35		$	0.34
Income attributable to common stock	$	2,862		$	2,095
Weighted average common shares outstanding	8,223			6,222
Weighted average common equivalent shares outstanding	1			1
Weighted average common and equivalent shares outstanding	8,224			6,223
Diluted earnings per common share	$	0.35		$	0.34

There were 52,123 and 54,275 options outstanding at March 31, 2012 and March 31, 2011, 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 March 31, 2012, were not included in the computation of diluted earnings per share because the assumed conversion of the trust preferred securities was antidilutive.