Earnings Per Common Share

3 Months Ended

Mar. 31, 2016

Earnings per Common Share

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options and warrants with proceeds used to purchase treasury shares at the average market price for the period. The computations are as follows for the three months ended March 31, 2016 and 2015 (dollars in thousands, except share and per share data):



	For the Three Months Ended March 31,
	2016		2015
Net income	$	2,964	2,834
Weighted average number of shares outstanding used in the calculation of basic earnings per common share	9,916,114		9,312,636
Add dilutive effect of:
Stock options	17,225		16,203
Stock warrants	63,487		81,935
Restricted shares	1,690		—
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share	9,998,516		9,410,774
Earnings per common share:
Basic	$	0.30	0.30
Diluted	0.30		0.30

Options to purchase 6,562 and 12,962 shares of common stock at a weighted average price of $17.88 and $18.41 per share were outstanding at March 31, 2016 and 2015, respectively, but were not included in the computation of diluted earnings per common share because the exercise prices of the options were greater than the average market price of the common shares.