Earnings per Common Share

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014 (dollars in thousands, except per share data):


	For the three months ended				For the nine months ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
(Numerator):
Net income	$	726	$	1,247	$	1,714	$	3,935
Effective dividend and accretion on preferred stock		328		329		985		810

Net income available to common shareholders	$	398	$	918	$	729	$	3,125


(Denominator):
Weighted average shares outstanding – basic		4,911,604		4,902,716		4,909,470		4,901,931
Potentially dilutive common shares – restricted stock units		1,857		—		2,481		—

Weighted average shares outstanding – diluted		4,913,461		4,902,716		4,911,951		4,901,931


Income per common share
Basic	$	0.08	$	0.19	$	0.15	$	0.64
Diluted	$	0.08	$	0.19	$	0.15	$	0.64