Earnings Per Share

12 Months Ended

Dec. 31, 2016

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding. Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the assumed conversion of the Company’s convertible preferred stock and the Company’s stock options and restricted stock awarded, unless anti-dilutive. The components of basic and diluted net income per common share available to common stockholders for the years ended December 31, 2016, 2015 and 2014 were as follows:



	2016			2015			2014
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	21,840,000		$	16,512,000		$	15,461,000
Preferred stock dividends	(825,000		)	(2,200,000		)	(4,152,000		)
Net income available to common stockholders	21,015,000			14,312,000			11,309,000
Weighted average common shares outstanding	10,149,099			7,775,490			6,002,766
Basic earnings per common share	$	2.07		$	1.84		$	1.88
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	21,015,000		$	14,312,000		$	11,309,000
Effect of assumed preferred stock conversion	825,000			2,200,000			4,152,000
Net income applicable to diluted earnings per share	21,840,000			16,512,000			15,461,000
Weighted average common shares outstanding	10,149,099			7,775,490			6,002,766
Dilutive potential common shares:
Assumed conversion of stock options	3,111			—			—
Restricted stock awarded	4,107			6,851			11,725
Assumed conversion of preferred stock	507,393			1,355,348			2,357,196
Dilutive potential common shares	514,611			1,362,199			2,368,921
Diluted weighted average common shares outstanding	10,663,710			9,137,689			8,371,687
Diluted earnings per common share	$	2.05		$	1.81		$	1.85

The following shares were not considered in computing diluted earnings per share for the years ended December 31, 2016, 2015 and 2014 because they were anti-dilutive:



	2016	2015	2014
Stock options to purchase shares of common stock	—	45,500	52,000