Earnings Per Share

6 Months Ended

Jun. 30, 2016

Basic net earnings per share, or basic earnings per share (“EPS”), is computed by dividing net income to common shareholders by the weighted average number of common shares outstanding for the period.

Diluted EPS reflects the potential dilution that could occur if COB's potential common stock, which consists of dilutive stock options and a common stock warrant, were issued. As required for entities with complex capital structures, a dual presentation of basic and diluted EPS is included on the face of the income statement, and a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation is provided in this note.



(dollars in thousands, except share and per share data)	For Three Months Ended				For Six Months Ended
	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
Net income	$	3,892	$	2,523	$	7,806	$	5,042
Weighted average number of shares outstanding - basic	24,294,424		24,202,012		24,293,214		24,192,744
Weighted average number of shares outstanding - diluted	24,316,019		24,214,578		24,314,165		24,204,832
Net income per share - basic and diluted	$	0.16	$	0.10	$	0.32	$	0.21

During the six months ended June 30, 2016 and June 30, 2015, the price of the Company's common stock (as quoted on the Nasdaq Capital Market) was below the price of the common stock warrant. As a result, the warrant was considered antidilutive and thus was not included in the diluted share calculation. The Company canceled the common stock warrant during the second quarter of 2016.

For the three months ended June 30, 2016, there were an average of 509,963 antidilutive shares, while for the six months ended June 30, 2016, there were an average of 516,185 antidilutive shares. For the three months ended June 30, 2015, there were an average of 322,526 antidilutive shares, while for the six months ended June 30, 2015, there were an average of 294,972 antidilutive shares. Of the antidilutive shares, the number of shares relating to stock options was 500,018 and 500,177 for the three months and six months ended June 30, 2016, respectively, and 300,454 and 272,900 for the three and six months ended June 30, 2015, respectively. The number relating to the common stock warrant was 9,945 and 16,008 for the three and six months ended June 30, 2016, respectively, and 22,072 for the three and six months ended June 30, 2015.