EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2017

NOTE 16 — EARNINGS PER COMMON SHARE

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earning available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data).

	Year Ended December 31,
	2017			2016			2015
Basic
Net income per consolidated statements of income		$	12,369		$	5,013		$	4,269
Less: Dividends paid to preferred shareholders			—			(3,420)			—
Less: Earnings allocated to participating securities			(183)			(30)			(85)
Net income available to common stockholder		$	12,186		$	1,563		$	4,184
Weighted average common shares outstanding including participating securities			5,147,149			3,708,734			2,775,152
Less: Weighted average participating securities			(76,104)			(68,708)			(55,347)
Weighted average common shares outstanding			5,071,045			3,640,026			2,719,805
Basic earnings per common share		$	2.40		$	0.43		$	1.54
Diluted
Net income allocated to common shareholders		$	12,186		$	1,563		$	4,184
Weighted average common shares outstanding for basic earnings per common share			5,071,045			3,640,026			2,719,805
Add: Dilutive effects of assumed exercise of stock options			131,189			33,000			—
Average shares and dilutive potential common shares			5,202,234			3,673,026			2,719,805
Dilutive earnings per commons share		$	2.34		$	0.43		$	1.54

There were no stock options that were not considered in computing diluted earnings per common share for 2017; and 45,500 and 289,000 shares of common stock were not considered in computing diluted earnings per common share for 2016 and 2015, respectively, because they were antidilutive.