Note 10 – Earnings Per Share

The earnings per share – both basic and diluted – are included below as of March 31 (in thousands except for share data):


	Three Months Ended March 31,
	2015		2014
Basic earnings per share:
Weighted-average common shares outstanding		29,470,297		13,921,023
Weighted-average common shares less stock based awards		29,470,297		13,912,523
Weighted-average common shares stock based awards		-		169,111
Net income	$	3,499	$	2,202
Preferred stock dividends and accretion		824		1,572
Net earnings available to common stockholders		2,675		630
Basic earnings per share common undistributed earnings		N/A		0.04
Basic earnings per share		0.09		0.04
Diluted earnings per share:
Weighted-average common shares outstanding		29,470,297		13,921,023
Dilutive effect of nonvested restricted awards1		203,583		160,611
Diluted average common shares outstanding		29,673,880		14,081,634
Net earnings available to common stockholders	$	2,675	$	630
Diluted earnings per share	$	0.09	$	0.04

Number of antidilutive options and warrants excluded from the diluted earnings per share calculation		1,044,339		1,140,839

1 Includes the common stock equivalents for restricted share rights that are dilutive.

The above earnings per share calculation did not include a warrant for 815,339 shares of common stock that was outstanding as of March 31, 2015, and March 31, 2014, because the warrant was anti-dilutive. Of note, the warrant was sold at auction by the Treasury in June 2013 to a third party investor.

The Company completed the redemption of 25,669 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “Series B Stock”) in the second quarter of 2014. As previously disclosed, the Company completed a public offering of 15,525,000 shares of common stock in April of 2014. Net proceeds of over $64.0 million were used to pay the accrued but unpaid interest on the Company’s trust preferred securities or junior subordinated debentures discussed in Note 8, the accumulated but unpaid dividends on the Series B Stock and to complete this redemption of the Series B Stock. The amount remaining after the completion of these transactions was retained at the Company for use in addressing general corporate matters. The redemption price for such Series B Stock was 94.75% of the liquidation value of the shares and the holders of the redeemed shares agreed to forebear payment of dividends due and waived any rights to such dividend upon redemption. The Company redeemed all shares of Series B Stock held by directors of the Company on the same terms.

On December 30, 2014, the Company provided notice that it was redeeming approximately one-third of the remaining issued and outstanding shares of the Company’s Series B Stock. The effective date for the redemption was January 31, 2015, and the redemption price was the stated liquidation value of $1,000 per share, together with any accrued and unpaid dividends accumulated to, but excluding, the redemption date. As of December 30, 2014, there were 47,331 shares of the Series B Preferred Stock outstanding, and redeeming one-third of the Series B Preferred Stock resulted in the redemption of 15,778 shares of Series B Preferred Stock. The redemption was successfully completed in the first quarter. As of March 31, 2015, 31,553 shares of the Series B Preferred Stock remained outstanding.