Earnings Per Common Share

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2016 and 2015 (dollars in thousands, except share and per share data):



	For the Three Months Ended June 30,			For the Six Months Ended June 30,
	2016		2015	2016		2015
Net income	$	2,968	3,123	$	5,932	5,957
Weighted average number of shares outstanding used in the calculation of basic earnings per common share	9,922,024		9,694,732	9,919,070		9,504,739
Add dilutive effect of:
Stock options	18,299		18,955	17,767		17,629
Stock warrants	—		91,041	32,465		86,682
Restricted shares	3,474		—	2,598		—
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share	9,943,797		9,804,728	9,971,900		9,609,050
Earnings per common share:
Basic	$	0.30	0.33	$	0.60	0.63
Diluted	0.29		0.32	0.59		0.62

Options to purchase 5,160 and 12,962 shares of common stock at a weighted average price of $17.88 and $18.41 per share were outstanding at June 30, 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.