Net Income Per Common Share

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 20. Net Income Per Common Share

Basic net earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of vested stock options. The computation of diluted earnings per share excludes those options with an exercise price in excess of the average market price of the Company’s common shares during the periods presented.

For the year ended December 31, 2011 there were 269,432 vested options with an exercise price below the average market price of the Company’s Common Stock during the period. For the year ended December 31, 2010 there were 204,716 vested options with an exercise price below the average market price of the Company’s Common Stock during the period. For 2010, the inclusion of net common shares assumed to issued upon the exercise of such options in the computation of diluted earnings per share would have been anti-dilutive for the period, and as a result, the weighted average number of common shares used in the calculation of basic and diluted earnings per common share is the same, and has not been adjusted for the effects of such options.

The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share for the years ended December 31, 2011 and 2010 follows:

	Year ended
	December 31,
	2011		2010
Weighted average number of shares outstanding		3,837,190		3,429,828
Effect of dilutive securities, common share equivalents		83,594		-
Weighted average number of shares outstanding,
used for computing diluted earnings per share		3,920,784		3,429,828