EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

3.  EARNINGS PER COMMON SHARE

Basic earnings per common share is computed based on the weighted-average number of shares outstanding.  Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, restricted stock grants and common stock warrants. For periods in which a loss is reported, the impact of stock options, restricted stock grants and common stock warrants is not considered as the result would be antidilutive.

The computation of earnings per common share for the three and six months ended June 30, 2011 and 2010 follows (in thousands, except share and per share data).

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Distributed earnings allocated to common stock	$	827		$	814		$	1,651		$	1,619
Undistributed earnings allocated to common stock	1,474			302			3,112			1,955
Net earnings allocated to common stock	$	2,301		$	1,116		$	4,763		$	3,574
Average market price	$	12.23		$	9.29		$	11.07		$	8.37
Weighted average common shares outstanding, including shares considered participating securities (1)	16,959,412			16,639,801			16,879,126			16,511,305
Less: weighted average participating securities (1)	(421,352		)	(351,392		)	(387,635		)	(298,161		)
Weighted average common shares outstanding	16,538,060			16,288,409			16,491,491			16,213,144
Dilutive effect of stock options, restricted stock grants and common stock warrants	152,383			89,756			134,591			63,293
Adjusted common shares outstanding - diluted	16,690,443			16,378,165			16,626,082			16,276,437
Net income per common share - basic	$	0.15		$	0.07		$	0.30		$	0.22
Net income per common share - diluted	$	0.14		$	0.07		$	0.29		$	0.22
Antidilutive common stock warrant issued to the Treasury under the CPP and not included in the calculation	—			465,569			232,785			465,569
Other antidilutive potential shares not included in the calculation	404,174			467,327			408,830			503,923

(1) The Company’s restricted stock grants are considered participating securities.