NOTE 9: EARNINGS PER SHARE

Basic earnings per share excludes dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if contracts to issue common stock were exercised or converted into common stock that would then share in earnings. The following table sets forth the Company’s unaudited earnings per share calculations for the periods indicated:

	Quarter Ended September 30, 2015				Quarter Ended September 30, 2014
(dollars in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted

Net income	$	2,762	$	2,762	$	2,659	$	2,659

Basic common shares outstanding		12,623,924		12,623,924		7,735,350		7,735,350
Effect of contingent shares issuable				796				64,000
Effect of options and restricted stock				450,215				441,074
Diluted common shares outstanding				13,074,935				8,240,424

Earnings per share	$	0.22	$	0.21	$	0.34	$	0.32

Based on a weighted average basis, options to purchase 14,500 and 65,407 shares of common stock were excluded for the quarter ended September 30, 2015 and 2014, respectively, because their effect would have been anti-dilutive.

	Nine Months Ended September 30, 2015				Nine Months Ended September 30, 2014
(dollars in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted

Net income	$	8,330	$	8,330	$	5,388	$	5,388

Basic common shares outstanding		9,534,056		9,534,056		7,734,372		7,734,372
Effect of contingent shares issuable				796				64,000
Effect of options and restricted stock				394,593				390,261
Diluted common shares outstanding				9,929,445				8,188,633

Earnings per share	$	0.87	$	0.84	$	0.70	$	0.66

Based on a weighted average basis, options to purchase 56,847 and 65,633 shares of common stock were excluded for the nine months ended September 30, 2015 and 2014, respectively, because their effect would have been anti-dilutive.