Earnings per Common Share

3 Months Ended

Mar. 31, 2016

(9) Earnings per Common Share

Basic earnings per common 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
	March 31,
	2016		2015
Basic
Net income	$	4,725	$	3,171
Preferred stock dividends		391		404

Net income available to common shareholders - basic	$	4,334	$	2,767

Weighted average common shares outstanding - basic		7,860,716		7,758,998

Basic earnings per common share	$	0.55	$	0.36

Diluted
Net income available to common shareholders - basic	$	4,334	$	2,767
Preferred stock dividends		391		404

Net income available to common shareholders - diluted	$	4,725	$	3,171

Weighted average common shares outstanding for basic earnings per common share basic		7,860,716		7,758,998
Add: Dilutive effects of convertible perferred shares		3,078,245		3,148,676

Average shares and dilutive potential common shares outstanding - diluted		10,938,961		10,907,674

Diluted earnings per common share	$	0.43	$	0.29

At March 31, 2016 and March 31, 2015 there were 3,078,245 and 3,148,676 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.