Net Income Per Common Share

9 Months Ended

Sep. 30, 2020

Note 11 – Net Income Per Common Share

The Company determines basic earnings per share by dividing net income less preferred stock dividends by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by dividing net income less dividends on convertible preferred stock plus interest on convertible subordinated debt by the weighted average number of shares outstanding increased by both the number of shares that would be issued assuming the exercise of stock options or restricted stock unit awards under the Company’s 2003 and 2013 Stock Incentive Plans and the conversion of preferred stock and subordinated debt if dilutive.


	Nine Months Ended September 30				Three Months Ended September 30
(Dollars in thousands except shares and per share data)	2020		2019		2020		2019
Numerator for basic earnings per share:
Net income from continuing operations	$	25,573	$	22,469	$	6,491	$	4,346
Less: Dividends on preferred stock	345		364		116		121
Net income from continuing operations available to common shareholders - basic	25,228		22,105		6,375		4,225
Net income from discontinued operations available to common shareholders - basic and diluted	—		427		—		(19)
Net income available to common shareholders - basic	$	25,228	$	22,532	$	6,375	$	4,206

Numerator for diluted earnings per share:



Net income from continuing operations available to common shareholders - diluted	$	25,228	$	22,105	$	6,375	$	4,225

Denominator:
Total weighted-average shares outstanding	11,948,857		11,661,581		11,948,989		11,731,774


Effect of dilutive stock options and restricted stock units	236,280		295,804		167,429		366,561
Total diluted weighted-average shares outstanding	12,185,137		11,957,385		12,116,418		12,098,335

Earnings per share from continuing operations - basic	$	2.11	$	1.89	$	0.53	$	0.36
Earnings per share from discontinued operations - basic	$	—	$	0.04	$	—	$	—
Earnings per share - basic	$	2.11	$	1.93	$	0.53	$	0.36
Earnings per share from continuing operations - diluted	$	2.07	$	1.84	$	0.53	$	0.35
Earnings per share from discontinued operations - diluted	$	—	$	0.04	$	—	$	—
Earnings per share - diluted	$	2.07	$	1.88	$	0.53	$	0.35

For the three months ended September 30, 2020 and 2019, approximately 850 thousand and 389 thousand, respectively, options to purchase shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive.

For the nine months ended September 30, 2020 and 2019, approximately 815 thousand and 396 thousand, respectively, options to purchase shares of common stock were not included in the computation of diluted earnings per share because the effect would be antidilutive.

For the three months ended September 30, 2020 and 2019, approximately 188 thousand and 113 thousand shares, respectively, of restricted stock units were not included in the computation of diluted earnings per share because the effect would be antidilutive.

For the nine months ended September 30, 2020 and 2019, approximately 179 thousand and 120 thousand shares, respectively, of restricted stock units were not included in the computation of diluted earnings per share because the effect would be antidilutive.