Earnings Per Share

6 Months Ended

Jun. 30, 2016

NOTE 2 – EARNINGS PER SHARE

Earnings per share (EPS) have been computed based on the weighted average number of common shares outstanding during the periods presented. For the period ended June 30, 2016, share-based awards totaling 33,924 common shares were not considered in computing diluted EPS as they were anti-dilutive. For the period ended June 30, 2015, share-based awards totaling 50,424 common shares were not considered in computing diluted EPS as they were anti-dilutive. Included in the diluted EPS for June 30, 2016 are the impact of the full conversion of the Company’s depository shares issued in December of 2014. Based upon the current conversion ratio, the 1,500,000 outstanding depository shares are convertible into an aggregate of 1,453,435 common shares. The average number of common shares used in the computation of basic and diluted earnings per share were:

	Three Months Ended June 30,
($ in thousands - except per share data)	2016		2015

Distributed earnings allocated to common shares	$	296	$	246
Undistributed earnings allocated to common shares		1,723		1,499
Net earnings allocated to common shares		2,019		1,745
Net earnings allocated to participating securities		2		2
Dividends on convertible preferred shares		244		244
Net Income allocated to common shares and participating securities	$	2,265	$	1,991

Weighted average shares outstanding for basic earnings per share		4,893		4,884
Dilutive effect of stock compensation		45		47
Dilutive effect of convertible shares		1,452		1,451
Weighted average shares outstanding for diluted earnings per share		6,390		6,382

Basic earnings per common share	$	0.41	$	0.36

Diluted earnings per common share	$	0.35	$	0.31

	Six Months Ended June 30,
($ in thousands - except per share data)	2016		2015

Distributed earnings allocated to common shares	$	566	$	467
Undistributed earnings allocated to common shares		2,861		2,548
Net earnings allocated to common shares		3,427		3,015
Net earnings allocated to participating securities		5		3
Dividends on convertible preferred shares		488		469
Net Income allocated to common shares and participating securities	$	3,920	$	3,487

Weighted average shares outstanding for basic earnings per share		4,894		4,882
Dilutive effect of stock compensation		50		48
Dilutive effect of convertible shares		1,452		1,451
Weighted average shares outstanding for diluted earnings per share		6,396		6,381

Basic earnings per common share	$	0.70	$	0.62

Diluted earnings per common share	$	0.61	$	0.54