EARNINGS PER SHARE (EPS)

9 Months Ended

Sep. 30, 2011

6. EARNINGS PER SHARE ("EPS")

EPS is calculated and reported in accordance with ASC 260. For entities like the Company with complex capital structures, ASC 260 requires disclosure of basic EPS and diluted EPS on the face of the income statement, along with a reconciliation of their numerators and denominators.

Basic EPS is computed by dividing net income by the weighted-average number of common shares outstanding during the period (weighted-average common shares are adjusted to exclude unallocated ESOP shares). Diluted EPS is computed using the same method as basic EPS, however, the computation reflects the potential dilution that would occur if outstanding in-the-money stock options were exercised and converted into common stock.

The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(Dollars in Thousands)
Numerator:
Net Income per the Consolidated Statements of Operations	$	11,164		$	11,355		$	34,582		$	30,829
Denominator:
Weighted-average number of shares outstanding utilized in the calculation of basic EPS		33,831,618			33,297,297			33,666,202			33,237,395
Common stock equivalents resulting from the dilutive effect of "in-the-money" outstanding stock options		58,566			110,192			131,923			104,329
Anti-dilutive effect of tax benefits associated with "in-the-money" outstanding stock options		(8,861	)		(12,967	)		(14,717	)		(13,150	)
Weighted average number of shares outstanding utilized in the calculation of diluted EPS		33,881,323			33,394,522			33,783,408			33,328,574

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Common stock equivalents resulting from the dilutive effect of "in-the-money" outstanding stock options are calculated based upon the excess of the average market value of the Holding Company's common stock over the exercise price of outstanding in-the-money stock options during the period.

There were 2,746,738 and 2,666,287 weighted-average stock options outstanding for the three-month periods ended September 30, 2011 and 2010, respectively, that were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period. There were 1,245,159 and 2,721,171 weighted-average stock options outstanding for the nine-month periods ended September 30, 2011 and 2010, respectively, that were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.