Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (EPS) for the nine months ended September 30, 2017 and 2016:



	Income (Numerator)		Shares (Denominator)	Per-Share Amount
For the nine months ended September 30, 2017
Net income as reported	$	14,502,000
Basic EPS: Income available to common shareholders	14,502,000		10,744,155	$	1.35
Effect of dilutive securities: restricted stock			71,923
Diluted EPS: Income available to common shareholders plus assumed conversions	$	14,502,000	10,816,078	$	1.34
For the nine months ended September 30, 2016
Net income as reported	$	13,689,000
Basic EPS: Income available to common shareholders	13,689,000		10,709,901	$	1.28
Effect of dilutive securities: restricted stock and warrants			110,492
Diluted EPS: Income available to common shareholders plus assumed conversions	$	13,689,000	10,820,393	$	1.27

The following table sets forth the computation of basic and diluted EPS for the quarters ended September 30, 2017 and 2016:



	Income (Numerator)		Shares (Denominator)	Per-Share Amount
For the quarter ended September 30, 2017
Net income as reported	$	4,982,000
Basic EPS: Income available to common shareholders	4,982,000		10,751,630	$	0.46
Effect of dilutive securities: restricted stock			71,086
Diluted EPS: Income available to common shareholders plus assumed conversions	$	4,982,000	10,822,716	$	0.46
For the quarter ended September 30, 2016
Net income as reported	$	4,562,000
Basic EPS: Income available to common shareholders	4,562,000		10,718,873	$	0.43
Effect of dilutive securities: restricted stock and warrants			125,495
Diluted EPS: Income available to common shareholders plus assumed conversions	$	4,562,000	10,844,368	$	0.42

All earnings per share calculations have been made using the weighted average number of shares outstanding during the period. The potentially dilutive securities are unvested shares of restricted stock granted to certain key members of Management and the warrants. The number of dilutive shares is calculated using the treasury method, assuming that all shares were vested and warrants were exercisable at the end of each period. Warrants that are out-of-the-money are not considered in the calculation of dilutive earnings per share as the effect would be anti-dilutive.

The following table presents the number of warrants outstanding as of September 30, 2016 and the amount for which the average market price at period end is above or below the strike price:

Outstanding

In-the-Money

Out-of-the-Money

For the three and nine months ended September 30, 2016

Warrants issued to private parties