Earnings Per Common Share

9 Months Ended

Sep. 30, 2017



	Three Months Ended September 30,
	2017						2016
	Income		Shares	Per Share Amounts			Income		Shares	Per Share Amounts
Basic EPS	$	1,902,902	2,945,474	$	0.65		$	1,669,731	2,944,001	$	0.57
Effect of Dilutive Securities:
Stock Options	—		3,762	(0.01		)	—		—	—
Senior Convertible Debentures	75,266		303,200	(0.03)			75,442		304,200	(0.03)
Unvested Restricted Stock	—		—	—			—		325	—
Diluted EPS	$	1,978,168	3,252,436	$	0.61		$	1,745,173	3,248,526	$	0.54



	Nine Months Ended September 30,
	2017						2016
	Income		Shares	Per Share Amounts			Income		Shares	Per Share Amounts
Basic EPS	$	5,009,467	2,945,215	$	1.70		$	4,732,748	2,944,001	$	1.61
Effect of Dilutive Securities:
Stock Options	—		3,251	(0.01		)	—		—	—
Senior Convertible Debentures	226,149		303,200	(0.08)			226,325		304,200	(0.07)
Unvested Restricted Stock	—		—	—			—		273	(0.01		)
Diluted EPS	$	5,235,616	3,251,666	$	1.61		$	4,959,073	3,248,474	$	1.53

Earnings Per Common Share

Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of options outstanding under the Company’s stock option plan is reflected in diluted EPS by application of the treasury stock method. All of the options outstanding at September 30, 2017 had an exercise price below the average market price during the three and nine months ended September 30, 2017. Therefore, these options were considered to be dilutive to EPS in those periods. None of the options outstanding at September 30, 2016 had an exercise price below the average market price during the three or nine month periods ended September 30, 2016. Therefore, these options were not deemed to be dilutive to EPS in those periods.

Net income available to common shareholders represents consolidated net income adjusted for preferred dividends declared, accretions of discounts and amortization of premiums on preferred stock issuances and cumulative dividends related to the current dividend period that have not been declared as of period end. The following table provides a reconciliation of net income to net income available to common shareholders for the periods presented:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Earnings Available To Common Shareholders:
Net Income	$	1,902,902	$	1,779,731	$	5,009,467	$	5,062,748
Preferred Stock Dividends	—		110,000		—		330,000
Net Income Available To Common Shareholders	$	1,902,902	$	1,669,731	$	5,009,467	$	4,732,748

4. Earnings Per Common Share, Continued

The following tables include a summary of the Company's basic and diluted EPS for the periods indicated.