| Components of Basic and Diluted Net Income per Common Share |
The components of basic and diluted net income per common share available to common stockholders for the three and nine-month periods ended September 30, 2013 and 2012 were as follows:
| | | | | | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Basic Net Income per Common Share | | | | | | | | Available to Common Stockholders: | | | | | | | | Net income | $ | 3,910,000 |
| | $ | 3,647,000 |
| | $ | 11,103,000 |
| | $ | 10,516,000 |
| Preferred stock dividends | (1,104,000 | ) | | (1,104,000 | ) | | (3,313,000 | ) | | (3,148,000 | ) | Net income available to common stockholders | $ | 2,806,000 |
| | $ | 2,543,000 |
| | $ | 7,790,000 |
| | $ | 7,368,000 |
| Weighted average common shares outstanding | 5,935,383 | | 6,030,053 | | 5,947,476 | | 6,025,255 | Basic earnings per common share | $ | 0.47 |
| | $ | 0.42 |
| | $ | 1.31 |
| | $ | 1.22 |
| Diluted Net Income per Common Share | | | | | | | | Available to Common Stockholders: | | | | | | | | Net income available to common stockholders | $ | 2,806,000 |
| | $ | 2,543,000 |
| | $ | 7,790,000 |
| | $ | 7,368,000 |
| Effect of assumed preferred stock conversion | — |
| |
| | — |
| | — |
| Net income applicable to diluted earnings per share | $ | 2,806,000 |
| | $ | 2,543,000 |
| | $ | 7,790,000 |
| | $ | 7,368,000 |
| Weighted average common shares outstanding | 5,935,383 |
| | 6,030,053 |
| | 5,947,476 |
| | 6,025,255 |
| Dilutive potential common shares: | | | | | | | | Assumed conversion of stock options | 2,151 |
| | 10,954 |
| | 2,864 |
| | 5,355 |
| Restricted stock awarded | 9,329 |
| | 135 |
| | 9,329 |
| | 275 |
| Assumed conversion of preferred stock | — |
| | — |
| | — |
| | — |
| Dilutive potential common shares | 11,480 |
| | 11,089 |
| | 12,193 |
| | 5,630 |
| Diluted weighted average common shares outstanding | 5,946,863 |
| | 6,041,142 |
| | 5,959,669 |
| | 6,030,885 |
| Diluted earnings per common share | $ | 0.47 |
| | $ | 0.42 |
| | $ | 1.31 |
| | $ | 1.22 |
|
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| Anti-dilutive Securities |
The following shares were not considered in computing diluted earnings per share for the three and nine-month periods ended September 30, 2013 and 2012 because they were anti-dilutive:
| | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Stock options to purchase shares of common stock | 130,500 |
| | 108,125 |
| | 130,500 |
| | 108,125 |
| Average dilutive potential common shares associated with convertible preferred stock | 2,494,801 |
| | 2,490,079 |
| | 2,494,801 |
| | 2,222,967 |
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