Earnings Per Common Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share for the Corporation is computed by dividing net income by the weighted average number of common shares outstanding during the period. Basic earnings per common share excludes any dilutive effect of common stock equivalents.

Diluted earnings per common share for the Corporation is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the dilutive effect of common stock equivalents using the treasury stock method. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Corporation’s stock option plans, restricted stock units that may be converted to stock, stock to be issued under the deferred stock compensation plan for non-employee directors and stock to be issued under the stock purchase plan for non-employee advisory directors. For any period in which a loss is recorded, the assumed exercise of stock options, restricted stock units that may be converted to stock and stock to be issued under the deferred stock compensation plan and the stock purchase plan would have an anti-dilutive impact on the loss per common share and thus are excluded in the diluted earnings per common share calculation.

The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(In thousands, except per share data)
Numerator for both basic and diluted earnings per common share, net income	$	13,106	$	11,625	$	39,346	$	31,846
Denominator for basic earnings per common share, weighted average common shares outstanding	27,498		27,457		27,490		27,454
Weighted average common stock equivalents	90		47		78		40
Denominator for diluted earnings per common share	27,588		27,504		27,568		27,494
Basic earnings per common share	$	0.48	$	0.42	$	1.43	$	1.16
Diluted earnings per common share	0.48		0.42		1.43		1.16

The average number of exercisable employee stock option awards outstanding that were “out-of-the-money,” whereby the option exercise price per share exceeded the market price per share and, therefore, were not included in the computation of diluted earnings per common share because they would have been anti-dilutive totaled 611,605 and 670,725 for the three months ended September 30, 2012 and 2011, respectively, and 618,703 and 663,492 for the nine months ended September 30, 2012 and 2011, respectively.