Net Income per Common Share

9 Months Ended

Sep. 30, 2012

Net Income per Common Share [Abstract]

Net Income per Common Share

Note 3 – Net Income per Common Share

The following table sets forth the computation of basic and diluted net income per common share:

	Three months ended				Nine months ended
	September 30,				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

Options not included in the computation of diluted net income per common share for the three months ended September 30, 2012 and 2011 to purchase 105,150 and 19,150 shares of Common Stock at an average price of $40.57 and $41.27, respectively, per common share were outstanding at September 30, 2012 and 2011. For the nine months ended September 30, 2012 and 2011, options to purchase 20,000 and 48,300 shares of Common Stock at an average price of $41.75 and $38.86, respectively, were excluded from the calculation of diluted net income per common share. These outstanding options were not included in the computation of diluted net income per common share because their respective exercise prices were greater than the average market price of the Common Stock.