EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2012

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 4. 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 September 30,
	2012				2011
	Shares	Per Share Amount			Shares	Per Share Amount
Basic	16,141	$	0.26		16,138	$	0.00
Effect of dilutive stock options	93	(.01		)	96	—
Diluted	16,234	$	0.25		16,234	$	0.00

	Nine Months Ended September 30,
	2012			2011
	Shares	Per Share Amount		Shares	Per Share Amount
Basic	16,140	$	0.47	16,138	$	0.32
Effect of dilutive stock options	109	—		89	(0.01		)
Diluted	16,249	$	0.47	16,227	$	0.31

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 calculation of earnings per share for the nine months ended September 30, 2012 and 2011; 2,164,055 and 1,754,832, respectively, were excluded.