Earnings Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share

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, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the three and nine-month period ended September 30, 2017 and 2016 were as follows:



	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	7,595,000	$	5,308,000	$	22,059,000	$	15,043,000
Preferred stock dividends	—		—		—		(825,000		)
Net income available to common stockholders	7,595,000		5,308,000		22,059,000		14,218,000
Weighted average common shares outstanding	12,528,674		10,497,072		12,498,913		9,372,547
Basic earnings per common share	$	0.61	$	0.51	$	1.76	$	1.52
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	7,595,000	$	5,308,000	$	22,059,000	$	14,218,000
Effect of assumed preferred stock conversion	—		—		—		825,000
Net income applicable to diluted earnings per share	7,595,000		5,308,000		22,059,000		15,043,000
Weighted average common shares outstanding	12,528,674		10,497,072		12,498,913		9,372,547
Dilutive potential common shares:
Assumed conversion of stock options	6,299		1,742		6,827		1,945
Restricted stock awarded	836		5,232		836		5,232
Assumed conversion of preferred stock	—		—		—		677,674
Dilutive potential common shares	7,135		6,974		7,663		684,851
Diluted weighted average common shares outstanding	12,535,809		10,504,046		12,506,576		10,057,398
Diluted earnings per common share	$	0.61	$	0.51	$	1.76	$	1.50

The following shares were not considered in computing diluted earnings per share for the three and nine-month periods ended September 30, 2017 and 2016 because they were anti-dilutive:



	Three months ended September 30,		Nine months ended September 30,
	2017	2016	2017	2016
Stock options to purchase shares of common stock	—	24,500	—	24,500