Earnings per Share

9 Months Ended

Sep. 30, 2013

Earnings per Share

Earnings per Share

9. 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.

As restricted shares and restricted stock units both participate in dividends, in accordance with ASC 260, 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.

	Three months ended				Nine months ended
	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
Basic earnings per common share
Net income	$	603	$	2,346	$	3,108	$	7,051
Less income allocated to participating securities	9		19		45		51
Net income allocated to common shareholders	$	594	$	2,327	$	3,063	$	7,000
Weighted average common shares outstanding	22,053,555		21,922,173		22,021,226		21,885,301
	$	0.03	$	0.11	$	0.14	$	0.32
Earnings per common share assuming dilution
Net income	$	603	$	2,346	$	3,108	$	7,051
Less income allocated to participating securities	9		19		45		51
Net income allocated to common shareholders	$	594	$	2,327	$	3,063	$	7,000
Weighted average common shares outstanding	22,053,555		21,922,173		22,021,226		21,885,301
Incremental shares applicable to stock based compensation	26,482		56,842		40,487		73,172
Weighted average common shares assuming dilution	22,080,037		21,979,015		22,061,713		21,958,473
	$	0.02	$	0.10	$	0.13	$	0.31