Earnings per Common Share

9 Months Ended

Sep. 30, 2015

(10) Earnings per Common Share

Basic earnings per share are computed as net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under the equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred stock using the “if converted” method.


	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Basic
Net income	$	3,253	$	2,306	$	9,546	$	7,257
Preferred stock dividends		391		406		1,186		1,467

Net income available to common shareholders - basic	$	2,862	$	1,900	$	8,360	$	5,790

Weighted average common shares outstanding - basic		7,843,578		7,707,917		7,815,222		7,707,917

Basic earnings per common share	$	0.36	$	0.25	$	1.07	$	0.75

Diluted
Net income available to common shareholders - basic	$	2,862	$	1,900	$	8,360	$	5,790
Preferred stock dividends on convertible preferred stock		391		406		1,186		1,201

Net income available to common shareholders - diluted	$	3,253	$	2,306	$	9,546	$	6,991

Weighted average common shares outstanding for basic earnings per common share basic		7,843,578		7,707,917		7,815,222		7,707,917
Add: Dilutive effects of convertible preferred shares		3,078,245		3,196,931		3,101,937		3,196,931

Average shares and dilutive potential common shares outstanding - diluted		10,921,823		10,904,848		10,917,159		10,904,848

Diluted earnings per common share	$	0.30	$	0.21	$	0.87	$	0.64

For the three and nine-month periods ended September 30, 2015 there were 3,078,245 and 3,101,937, respectively, dilutive shares related to the Company’s convertible preferred stock. For the three- and nine-month periods ended September 30, 2014 there were 3,196,931 dilutive shares related to the Company’s convertible preferred stock. Under the “if converted” method, all convertible preferred shares are assumed to be converted into common shares at the corresponding conversion rate. These additional shares are then added to the common shares outstanding to calculate diluted earnings per share.

For the three- and nine-month periods ended September 30, 2015, there were 16,983 shares of unvested restricted stock outstanding at a price of $10.82 per share that were not included in the computation of diluted earnings per share because they were anti-dilutive. At September 30, 2014, there was no unvested restricted stock outstanding. There were no stock options outstanding during the three- and nine-month periods ended September 30, 2015 and 2014.