7. Earnings Per Share

The Company follows the provisions of FASB ASC Topic 260, Earnings Per Share (“EPS”). A computation of Basic EPS and Diluted EPS for the three months ending March 31, 2012 and 2011 is presented in the table below.

		Three Months Ended
(in thousands, except share and per share data)		03/31/2012				03/31/2011
Basic
Net income available to common shareholders		$	7,811			$	8,773
Less: dividends and undistributed earnings allocated to unvested restricted stock awards			(34	)			(11	)
Net earnings allocated to common shareholders			7,777				8,762
Weighted average shares outstanding, including participating securities			11,151,981				10,919,110
Less: average participating securities			(48,789	)			(13,913	)
Weighted average shares outstanding - Basic			11,103,192				10,905,197
Diluted
Net earnings allocated to common shareholders			7,777				8,762
Weighted average shares outstanding - Basic			11,103,192				10,905,197
Dilutive effect of common stock options or restricted stock awards			44,298				50,233
Weighted average shares outstanding - Diluted			11,147,490				10,955,430
Basic EPS			0.70				0.80
Diluted EPS			0.70				0.80

The dilutive effect of common stock options or restricted awards calculation for the three months ended March 31, 2012 and 2011 excludes stock options, stock appreciation rights and restricted stock awards covering an aggregate of 585,824 and 704,833 because the exercise prices were greater than the average market price during these periods.