Earnings per Common Share

9 Months Ended

Sep. 30, 2016

Note 11. 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, 2016 and 2015 (dollars in thousands, except per share data):


	For the three months ended				For the nine months ended
	September 30,		September 30,		September 30,		September 30,
	2016		2015		2016		2015
(Numerator):
Net income	$	1,694	$	726	$	4,226	$	1,714
Effective dividend on preferred stock		—		328		—		985

Net income available to common shareholders	$	1,694	$	398	$	4,226	$	729

(Denominator):
Weighted average shares outstanding – basic		4,925,753		4,911,604		4,923,598		4,909,470
Potentially dilutive common shares – restricted stock units		4,169		1,857		2,782		2,481

Weighted average shares outstanding – diluted		4,929,922		4,913,461		4,926,380		4,911,951

Income per common share
Basic	$	0.34	$	0.08	$	0.86	$	0.15
Diluted	$	0.34	$	0.08	$	0.86	$	0.15