EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

2. EARNINGS PER SHARE

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 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, 2013 and 2012 is as follows:

	Three months ended,
	March 31,
(In thousands, except per share data)	2013			2012
Net Income	$	3,113		$	2,939
Less: Dividends paid on and earnings allocated to participating securities	(80		)	(77		)
Income attributable to common stock	$	3,033		$	2,862
Weighted average common shares outstanding, including participating securities	8,978			8,447
Less: weighted average participating securities	(231		)	(224		)
Weighted average common shares outstanding	8,747			8,223
Basic earnings per common share	$	0.35		$	0.35
Income attributable to common stock	$	3,033		$	2,862
Weighted average common shares outstanding	8,747			8,223
Weighted average common equivalent shares outstanding	—			1
Weighted average common and equivalent shares outstanding	8,747			8,224
Diluted earnings per common share	$	0.35		$	0.35

There were 49,362 and 52,123 options outstanding at March 31, 2013 and March 31, 2012, 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, 2013, were not included in the computation of diluted earnings per share because the assumed conversion of the trust preferred securities was antidilutive.