Note 6. Stockholders' Equity and Earnings per Share

STOCKHOLDERS' EQUITY - OTHER COMPREHENSIVE INCOME

The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated:

	Three Months Ended March 31,					Affected Line Item on Consolidated Statement of Income
	2013		2012
Available-for-sale securities
Realized gains on sales of securities	$	0	$	314		Gain on sale of available-for-sale securities, net
Tax effect		0		(107	)	Income tax expense
	$	0	$	207		Net of tax

The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, as of the periods indicated:

	Unrealized Gains (Losses) on Securities			Defined Benefit Pension Plans			Accumulated Other Comprehensive Loss
	(in thousands)

THREE MONTHS ENDED MARCH 31, 2013

Balance at beginning of period	$	1,993		$	(2,184	)	$	(191	)
Net change for the quarter		(1,727	)		0			(1,727	)
Balance at end of period	$	266		$	(2,184	)	$	(1,918	)

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to outstanding stock options.

The Company did not include an average of 154 thousand potential common shares attributable to outstanding stock options in the diluted earnings per share calculation for the first three months of 2013 because they were antidilutive.