Earnings Per Share

3 Months Ended

Mar. 31, 2017

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. Included in the diluted EPS for March 31, 2017 are the impact of the full conversion of the Company’s depositary shares. Based upon the current conversion price of $10.2905, the 1,500,000 outstanding depositary shares are convertible into an aggregate of 1,457,662 common shares. For the three month period ended March 31, 2016, share-based awards totaling 35,424 common shares were not considered in computing diluted EPS as they were anti-dilutive. There were no anti-dilutive shares in 2017. The average number of common shares used in the computation of basic and diluted earnings per share were:

	Three Months Ended Mar. 31,
($ in thousands - except per share data)	2017		2016

Distributed earnings allocated to common shares	$	319	$	271
Undistributed earnings allocated to common shares		1,427		1,138

Net earnings allocated to common shares		1,746		1,409
Net earnings allocated to participating securities		3		2
Dividends on convertible preferred shares		244		244

Net Income allocated to common shares and participating securities	$	1,993	$	1,655

Weighted average shares outstanding for basic earnings per share		4,855		4,896
Dilutive effect of stock compensation		74		53
Dilutive effect of convertible shares		1,458		1,452

Weighted average shares outstanding for diluted earnings per share		6,387		6,401

Basic earnings per common share	$	0.36	$	0.29

Diluted earnings per common share	$	0.31	$	0.26