Earnings Per Common Share

9 Months Ended

Sep. 30, 2011

Note 2 — Earnings Per Common Share

Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method.

For the three month periods ended September 30, 2011 and 2010, average anti-dilutive employee share-based awards totaled 146,979 and 174,861, respectively. For the nine month periods ended September 30, 2011 and 2010, average anti-dilutive employee share-based awards totaled 145,526 and 188,542, respectively.


	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2011		2010		2011		2010
Basic earnings per common share
Net income	$	2,178,711	$	968,733	$	6,040,675	$	342,716
Less: earnings allocated to participating securities		83,222		18,020		230,298		7,952

Earnings allocated to common shareholders	$	2,095,489	$	950,713	$	5,810,377	$	334,764


Weighted-average common shares outstanding, excluding participating securities		2,511,767		2,489,278		2,502,991		2,479,706

Basic earnings per common share	$	0.83	$	0.38	$	2.32	$	0.14

Diluted earnings per common share
Earnings allocated to common shareholders	$	2,095,489	$	950,713	$	5,810,377	$	334,764
Reallocation of undistributed earnings		(1)		—		—		—

Earnings allocated to common shareholders	$	2,095,488	$	950,713	$	5,810,377	$	334,764


Weighted average common shares outstanding		2,511,767		2,489,278		2,502,991		2,479,706
Dilutive effect of share-based awards		50		—		—		—

Weighted-average diluted common shares outstanding		2,511,817		2,489,278		2,502,991		2,479,706


Diluted earnings per common share	$	0.83	$	0.38	$	2.32	$	0.14