Note

. Earnings per Share

The following table presents the calculation of basic and diluted earnings per common share for the periods indicated:

	Year Ended December 31,
	2017		2016		2015
(Amounts in thousands, except share and per share data)
Net income	$	21,485	$	25,126	$	24,540
Dividends on preferred stock		-		-		105
Net income available to common shareholders	$	21,485	$	25,126	$	24,435

Weighted average common shares outstanding, basic		17,002,116		17,319,689		18,531,039
Dilutive effect of potential common shares
Stock options		52,205		34,530		26,487
Restricted stock		23,521		11,305		2,996
Convertible preferred stock		-		-		166,942
Total dilutive effect of potential common shares		75,726		45,835		196,425
Weighted average common shares outstanding, diluted		17,077,842		17,365,524		18,727,464

Basic earnings per common share	$	1.26	$	1.45	$	1.32
Diluted earnings per common share		1.26		1.45		1.31

Antidilutive potential common shares
Stock options		64,081		107,592		127,882
Restricted stock		3,620		3,279		-
Total potential antidilutive shares		67,701		110,871		127,882

he Company redeemed all outstanding shares of its

Series A Noncumulative Convertible Preferred Stock (“Series A Preferred Stock”) in

2015.

Before redemption, holders converted

12,784

shares of Series A Preferred Stock with each share convertible into

shares of the Company’s common stock. The Company redeemed the remaining

2,367

shares for

$2.37

million along with accrued and unpaid dividends of

thousand.