Net Income per Common Share (Tables)

6 Months Ended

Jun. 30, 2013

Computation of Basic and Diluted Net Income Per Common Share

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

	Three months ended					Six months ended
	June 30,					June 30,
(dollars in thousands, except per share amounts)	2013			2012		2013			2012
Numerator:
Net income	$	478		$	4,505	$	518		$	10,791
Adjustment for interest expense on convertible notes (A)		(32	)		104		(65	)		212
Net income, as adjusted	$	446		$	4,609	$	453		$	11,003
Denominator:
Weighted average number of shares of common stock outstanding		6,940,831			6,863,904		6,934,182			6,856,310
Weighted average effect of assumed conversion of convertible notes		428,888			428,888		428,177			428,173
Weighted average effect of dilutive stock options and other stock compensation		115,686			172,468		131,766			160,908
Weighted average number of shares of common stock outstanding, as adjusted		7,485,405			7,465,260		7,494,125			7,445,391
Net income per common share:
Net income per common share – Basic	$	0.07		$	0.66	$	0.07		$	1.57
Net income per common share – Diluted	$	0.06		$	0.62	$	0.06		$	1.48

(A) The adjustment for interest expense on convertible notes is net of tax. For the three and six months ended June 30, 2013, the adjustment is a reduction to net income as a result of our annualized effective tax rate for 2013.