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, 2016				Quarter Ended September 30, 2015
(dollars in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted

Net income	$	9,675	$	9,675	$	2,762	$	2,762

Basic common shares outstanding		16,257,008		16,257,008		12,623,924		12,623,924
Effect of contingent shares issuable				796				796
Effect of options and restricted stock				530,143				450,215
Diluted common shares outstanding				16,787,947				13,074,935

Earnings per share	$	0.60	$	0.58	$	0.22	$	0.21

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

	Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
(dollars in thousands, except per share amounts)	Basic		Diluted		Basic		Diluted

Net income	$	16,786	$	16,786	$	8,330	$	8,330

Basic common shares outstanding		16,132,112		16,132,112		9,534,056		9,534,056
Effect of contingent shares issuable				796				796
Effect of options and restricted stock				549,899				394,593
Diluted common shares outstanding				16,682,807				9,929,445

Earnings per share	$	1.04	$	1.01	$	0.87	$	0.84

Based on a weighted average basis, options to purchase 4,401 and 56,847 shares of common stock were excluded for the nine months ended September 30, 2016 and 2015, respectively, because their effect would have been anti-dilutive.