Earnings per Share

6 Months Ended

Jun. 30, 2011

(2) Earnings per Share

Basic earnings per share (“EPS”) exclude dilution and are computed by dividing net income by the weighted average number of common shares and participating securities outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of additional common stock that then share in the earnings of the Company.

The following sets forth a reconciliation of basic EPS and diluted EPS:


	Three Months Ended
	June 30,		June 30,
	2011		2010
	*(In thousands, except per share data)*
Basic EPS Computation:
Numerator:
Net income	$	1,819	$	2,681

Denominator:
Weighted average shares outstanding		4,689		4,664

Basic EPS	$	0.39	$	0.57

Diluted EPS Computation:
Numerator:
Net income	$	1,819	$	2,681
Denominator:
Weighted average shares outstanding		4,689		4,664
Dilutive effect of stock options		77		25
Dilutive effect of contingent shares		2		1

Diluted weighted average shares outstanding		4,768		4,690
Diluted EPS	$	0.38	$	0.57

For the three months ended June 30, 2011 and 2010, average options to purchase 20,500 and 224,900 shares of common stock, respectively, were outstanding but excluded from the computation of diluted EPS because they were anti-dilutive.