EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 3. EARNINGS PER SHARE

Basic earnings per share is computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period.  Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options.  The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (shares in thousands):

	Three Months Ended June 30,
	2011			2010
	Shares	Per Share Amount		Shares	Per Share Amount
Basic	16,138	$	0.22	16,129	$	0.16
Effect of dilutive stock options	86	—		92	—
Diluted	16,224	$	0.22	16,221	$	0.16

	Six Months Ended June 30,
	2011				2010
	Shares	Per Share Amount			Shares	Per Share Amount
Basic	16,138	$	0.32		16,127	$	0.32
Effect of dilutive stock options	85	(.01		)	59	—
Diluted	16,223	$	0.31		16,186	$	0.32

Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the market price as their effects would be anti-dilutive in the computation of diluted earnings per share.  For the three and six months ended June 30, 2011; 1,737,053 and 1,518,416 anti-dilutive options were excluded from the computation.