Earnings Per Share

12 Months Ended

Dec. 31, 2015

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding. Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the assumed conversion of the Company’s convertible preferred stock and the Company’s stock options and restricted stock awarded, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the years ended December 31, 2015, 2014 and 2013 were as follows:



	2015			2014			2013
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	16,512,000		$	15,461,000		$	14,722,000
Preferred stock dividends	(2,200,000		)	(4,152,000		)	(4,417,000		)
Net income available to common stockholders	14,312,000			11,309,000			10,305,000
Weighted average common shares outstanding	7,775,490			6,002,766			5,934,628
Basic earnings per common share	$	1.84		$	1.88		$	1.74
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	14,312,000		$	11,309,000		$	10,305,000
Effect of assumed preferred stock conversion	2,200,000			4,152,000			—
Net income applicable to diluted earnings per share	16,512,000			15,461,000			10,305,000
Weighted average common shares outstanding	7,775,490			6,002,766			5,934,628
Dilutive potential common shares:
Assumed conversion of stock options	—			—			2,090
Restricted stock awarded	6,851			11,725			8,184
Assumed conversion of preferred stock	1,355,348			2,357,196			—
Dilutive potential common shares	1,362,199			2,368,921			10,274
Diluted weighted average common shares outstanding	9,137,689			8,371,687			5,944,902
Diluted earnings per common share	$	1.81		$	1.85		$	1.73

The following shares were not considered in computing diluted earnings per share for the years ended December 31, 2015, 2014 and 2013 because they were anti-dilutive:



	2015	2014	2013
Stock options to purchase shares of common stock	45,500	52,000	130,500
Average dilutive potential common shares associated with convertible preferred stock	—	—	2,494,801