Earnings per Common Share

6 Months Ended

Jun. 30, 2015

Note 10. Earnings per Common Share

Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.

The following table presents the computation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 (dollars in thousands, except per share data):


	For the three months ended				For the six months ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
(Numerator):
Net income	$	444	$	1,542	$	988	$	2,688
Effective dividend and accretion on preferred stock		328		261		657		481

Net income available to common shareholders	$	116	$	1,281	$	331	$	2,207


(Denominator):
Weighted average shares outstanding – basic		4,909,775		4,901,599		4,908,386		4,901,532
Potentially dilutive common shares – restricted stock units		1,523		—		2,793		—

Weighted average shares outstanding – diluted		4,911,298		4,901,599		4,911,179		4,901,532


Income per common share
Basic	$	0.02	$	0.26	$	0.07	$	0.45
Diluted	$	0.02	$	0.26	$	0.07	$	0.45