Earnings per Common Share

6 Months Ended

Jun. 30, 2019

(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 Company’s equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred shares using the “if converted” method.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Basic
Net income	$	8,661	$	3,014	$	18,330	$	10,003
Preferred stock dividends		164		299		328		602
Net income available to common shareholders—basic	$	8,497	$	2,715	$	18,002	$	9,401
Weighted average common shares outstanding—basic		15,628,537		10,470,839		15,618,154		10,342,763
Basic earnings per common share	$	0.54	$	0.26	$	1.15	$	0.91
Diluted
Net income available to common shareholders—basic	$	8,497	$	2,715	$	18,002	$	9,401
Preferred stock dividends		164		299		328		602
Net income available to common shareholders—diluted	$	8,661	$	3,014	$	18,330	$	10,003
Weighted average common shares outstanding for basic earnings per common share		15,628,537		10,470,839		15,618,154		10,342,763
Add: Dilutive effects of convertible preferred shares		1,294,175		2,144,497		1,294,175		2,263,652
Average shares and dilutive potential common shares outstanding—diluted		16,922,712		12,615,336		16,912,329		12,606,415
Diluted earnings per common share	$	0.51	$	0.24	$	1.08	$	0.79

For the three-month periods ended June 30, 2019 and June 30, 2018, there were 1,294,175 and 2,144,497, respectively, of average dilutive shares related to the Company’s convertible preferred shares. For the six-month periods ended June 30, 2019 and June 30, 2018, there were 1,294,175 and 2,263,652, respectively, of average dilutive shares related to the Company’s convertible preferred shares. 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.