EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 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 nine months ended September 30, 2011 and 2010 follows (in thousands, except share and per share data).

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Distributed earnings allocated to common stock	$	828		$	815		$	2,478		$	2,435
Undistributed earnings allocated to common stock	5,621			1,820			8,735			3,777
Net earnings allocated to common stock	$	6,449		$	2,635		$	11,213		$	6,212
Average market price	$	11.76		$	9.06		$	11.30		$	8.60
Weighted average common shares outstanding, including shares considered participating securities (1)	16,959,056			16,659,283			16,905,995			16,560,961
Less: weighted average participating securities (1)	(405,806		)	(356,046		)	(393,692		)	(317,456		)
Weighted average common shares outstanding	16,553,250			16,303,237			16,512,303			16,243,505
Dilutive effect of stock options, restricted stock grants and common stock warrants	140,719			98,686			136,633			75,090
Adjusted common shares outstanding - diluted	16,693,969			16,401,923			16,648,936			16,318,595
Net income per common share - basic	$	0.39		$	0.17		$	0.68		$	0.39
Net income per common share - diluted	$	0.39		$	0.17		$	0.68		$	0.39
Antidilutive common stock warrant issued to the Treasury under the CPP and not included in the calculation	465,569			465,569			310,379			465,569
Other antidilutive potential shares not included in the calculation	391,145			463,298			402,935			490,381

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