Three months ended

Nine months ended

September 30,

(dollars in thousands, except per share amounts)

2012

2011

2012

2011

Numerator:

Net income

$

2,745

$

3,893

$

13,536

$

13,866

Adjustment for interest expense on convertible notes

96

33

304

33

Net income, as adjusted

$

2,841

$

3,926

$

13,840

$

13,899

Denominator:

Weighted average number of shares of Common Stock outstanding

6,877,915

6,831,048

6,863,564

6,821,944

Weighted average effect of dilutive stock options

128,611

167,770

155,360

160,235

Weighted average effect of assumed conversion of convertible notes

427,396

203,568

427,912

68,602

Weighted average number of shares of Common Stock outstanding, as adjusted

7,433,922

7,202,386

7,446,836

7,050,781

Net income per common share:

Net income per common share – Basic

$

0.40

$

0.57

$

1.97

$

2.03

Net income per common share – Diluted

$

0.38

$

0.55

$

1.86

$

1.97