Earnings per Share

6 Months Ended

Jun. 30, 2011

Earnings per Share [Abstract]

Earnings per Share

Note B  Earnings per Share

The Company had stock compensation awards with non-forfeitable rights which are considered participating securities prior to 2011.  All compensation awards were vested as of December 31, 2010.  As such, earnings per share is computed using the two-class method.   Basic earnings per share is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period, excluding outstanding participating securities. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock-based compensation plans, but excludes awards considered participating securities.

Earnings per common share have been computed based on the following for the three months and six months ended June 30, 2011 and 2010:

	Three Months Ended					Six Months Ended
	June 30,  2011		June 30, 2010			June 30,  2011		June 30, 2010
Net income attributable to Oneida Financial Corp.	$	1,696,050	$	814,452		$	3,109,037	$	1,441,537
Net earnings allocated to participating securities		-		(2,613	)		-		(6,267	)
Net earnings allocated to common stock	$	1,696,050	$	811,839		$	3,109,037	$	1,435,270
Note B  Earnings per Share (Continued)
Basic
Distributed earnings allocated to common stock	$	859,775	$	422,158		$	1,719,248	$	1,261,908
Undistributed  earnings allocated
to common stock		836,275		389,681			1,389,789		173,362
Net earnings allocated to common stock	$	1,696,050	$	811,839		$	3,109,037	$	1,435,270
Weighted average common shares outstanding
including shares considered participating securities		7,048,950		7,164,682			7,046,616		7,158,104
Less:  Average participating securities		-		(14,973	)		-		(14,973	)
Weighted average shares		7,048,950		7,149,709			7,046,616		7,143,131
Basic earnings per share	$	0.24	$	0.11		$	0.44	$	0.20
Diluted
Net earnings allocated to common stock	$	1,696,050	$	811,839		$	3,109,037	$	1,435,270
Weighted average common shares outstanding
for basic earnings per common share		7,048,950		7,149,709			7,046,616		7,143,131
Add: Dilutive effects of assumed
exercise of stock options		-		-			-		-
Weighted average shares and dilutive
potential common shares		7,048,950		7,149,709			7,046,616		7,143,131
Diluted earnings per common share	$	0.24	$	0.11		$	0.44	$	0.20

There were no stock options considered in computing diluted earnings per common share for 2011 and 2010 as all options expired April 25, 2010.  Dividends of $5,904 as of June 30, 2010 were declared on unvested shares with non-forfeitable dividend rights none of which was included in net income as compensation expense because all the awards are expected to vest.