Earnings Per Share

12 Months Ended

Dec. 31, 2017

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, 2017, 2016 and 2015 were as follows:



	2017		2016			2015
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	26,684,000	$	21,840,000		$	16,512,000
Preferred stock dividends	—		(825,000		)	(2,200,000		)
Net income available to common stockholders	26,684,000		21,015,000			14,312,000
Weighted average common shares outstanding	12,531,659		10,149,099			7,775,490
Basic earnings per common share	$	2.13	$	2.07		$	1.84
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	26,684,000	$	21,015,000		$	14,312,000
Effect of assumed preferred stock conversion	—		825,000			2,200,000
Net income applicable to diluted earnings per share	26,684,000		21,840,000			16,512,000
Weighted average common shares outstanding	12,531,659		10,149,099			7,775,490
Dilutive potential common shares:
Assumed conversion of stock options	4,875		3,111			—
Restricted stock awarded	—		4,107			6,851
Assumed conversion of preferred stock	—		507,393			1,355,348
Dilutive potential common shares	4,875		514,611			1,362,199
Diluted weighted average common shares outstanding	12,536,534		10,663,710			9,137,689
Diluted earnings per common share	$	2.13	$	2.05		$	1.81

The following shares were not considered in computing diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 because they were anti-dilutive:



	2017	2016	2015
Stock options to purchase shares of common stock	—	—	45,500