Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share

Earnings Per Share

14. Earnings Per Share

        Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the weighted average number of common shares and common stock equivalents related to the assumed exercise of stock options, using the two-class method. Stock options for which the exercise price exceeds the average fair value have an anti-dilutive effect on earnings per share and are excluded from the calculation. There were no shares excluded from diluted earnings per share for the years presented.

        Subsequent to the payment of the third quarter 2010 dividend, which was the first dividend payment made subsequent to the IPO, management retroactively approved all restricted stockholders for shares issued and outstanding to participate in dividends. As such, the Company has calculated earnings per share pursuant to the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends.

	2012		2011		2010
Basic earnings per common share
Net income	$	6,012	$	19,040	$	1,662
Less income allocated to participating securities		69		233		12
Net income allocated to common shareholders	$	5,943	$	18,807	$	1,650
Weighted average common shares outstanding		21,894,569		21,650,736		18,799,761
	$	0.27	$	0.87	$	0.09
Earnings per common share assuming dilution
Net income	$	6,012	$	19,040	$	1,662
Less income allocated to participating securities		69		233		12
Net income allocated to common shareholders	$	5,943	$	18,807	$	1,650
Weighted average common shares outstanding		21,894,569		21,650,736		18,799,761
Incremental shares applicable to stock based compensation		69,742		163,881		487,685
Weighted average common shares assuming dilution		21,964,311		21,814,617		19,287,446
	$	0.26	$	0.85	$	0.09