This excerpt taken from the FDEF 10-Q filed May 11, 2009.
8. Earnings Per Share
Basic earnings per share as disclosed under SFAS No. 128 has been calculated by dividing net income by the weighted average number of shares of common stock outstanding for the three month periods ended March 31, 2009 and 2008. First Defiance accounts for the shares issued to its Employee Stock Ownership Plan (ESOP) in accordance with Statement of Position 93-6 of the American Institute of Certified Public Accountants (AICPA). As a result, shares controlled by the ESOP are not considered in the weighted average number of shares of common stock
outstanding until the shares are committed for allocation to an employees individual account. In the calculation of diluted earnings per share for the three month periods ended March 31, 2009 and 2008, the effect of shares issuable under stock option plans and unvested shares under the Management Recognition Plan have been accounted for using the Treasury Stock method.
The following table sets forth the computation of basic and diluted earnings per common share (in thousands except per share data):
Shares under option of 198,501 in the first quarter of 2008 were excluded from the diluted earnings per common share calculation as they were anti-dilutive. There were no options excluded in the first quarter of 2009.