Net Income Per Common Share

12 Months Ended

Dec. 31, 2012

Net Income Per Common Share

Note 10: Net Income Per Common Share

The computation of basic and diluted net income per common share for the years ended December 31, 2012, 2011 and 2010 is as follows:

For the years ended December 31,	2012		2011		2010
(dollars in thousands, except per share amounts)
Numerator:
Net income	$	14,617	$	18,122	$	13,242
Adjustment for interest expense on convertible notes, net of capitalized interest		458		119		-
Net income, as adjusted	$	15,075	$	18,241	$	13,242
Denominator:
Weighted average number of shares of Common Stock outstanding		6,874,669		6,826,490		6,782,576
Weighted average effect of dilutive stock options and other stock compensation		151,223		153,397		85,679
Weighted average effect of assumed conversion of convertible notes (A)		428,138		158,937		-
Weighted average number of shares of Common Stock outstanding, as adjusted		7,454,030		7,138,824		6,868,255
Net income per common share:
Net income per common share – Basic	$	2.13	$	2.65	$	1.95
Net income per common share – Diluted	$	2.02	$	2.56	$	1.93

(A) The weighted average for the assumed conversion of the Notes was calculated from the August 18, 2011 issuance.

There were 29,150, 144,300 and 211,800 stock options outstanding, which were excluded from the computation of diluted net income per common share, at an average price of $41.18, $38.35 and $32.90, respectively, at December 31, 2012, 2011 and 2010, respectively. 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. These options were excluded from the computation of diluted net income per common share under the treasury stock method.