EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2012

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 7 - EARNINGS PER SHARE

Earnings per common share (EPS) were computed as follows:

	September 30, 2012						September 30, 2011
For the three months ended:	Net Income			Weighted Average Shares	Per Share Amount		Net Income			Weighted Average Shares	Per Share Amount
Basic earnings per common share:
Net income	$	6,986		20,289,609			$	5,615		20,194,421
Preferred dividends and accretion	(458		)				(763		)
Net income available to common shareholders	$	6,528		20,289,609	$	0.32	$	4,852		20,194,421	$	0.24
Effect of Dilutive stock options				57,989						36,674
Net income available to common shareholders and assumed conversions	$	6,528		20,347,598	$	0.32	$	4,852		20,231,095	$	0.24

Stock options for 306,929 common shares and stock warrants for 571,906 common shares in 2012 and stock options for 260,616 common shares and stock warrants for 571,906 in 2011 were not considered in computing diluted earnings per share because they were antidilutive.

	September 30, 2012						September 30, 2011
For the nine months ended:	Net Income			Weighted Average Shares	Per Share Amount		Net Income			Weighted Average Shares	Per Share Amount
Basic earnings per common share:
Net income	$	19,979		20,253,560			$	17,787		20,171,550
Preferred dividends and accretion	(1,694		)				(2,290		)
Redemption of preferred stock	1,302
Net income available to common shareholders	19,587			20,253,560	$	0.97	15,497			20,171,550	$	0.77
Effect of Dilutive stock options				59,400						40,192
Net income available to common shareholders and assumed conversions	$	19,587		20,312,960	$	0.96	$	15,497		20,211,742	$	0.77

Stock options for 286,943 common shares and stock warrants for 571,906 common shares in 2012 and stock options for 260,616 common shares and stock warrants for 571,906 in 2011 were not considered in computing diluted earnings per share because they were antidilutive.

The majority of the redemption of the preferred stock occurred in the quarter ended March 31, 2012.  It is reflected, above, in income attributable to common shareholders for the nine months ended September 30, 2012 totaling $1.3 million, but was not included in the first quarter’s earnings per share computation.  The Company has elected to not restate prior quarters’ earnings for the above redemption amount.   The amount of the discount represented 21% of net income and $0.06 on an earnings per share basis.  Reported earnings per share for the first quarter of 2012 was $0.26 compared to $0.19 in the prior year.  This was a significant improvement on a year-over-year basis and the Company does not feel that an additional $0.06, $.32 per share, would have materially affected the investment community’s outlook on its performance.