Net Income Per Common Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Net Income Per Common Share

Note 2: Net income per Common Share

The following table sets forth the computation of basic and diluted net income per common share:

	Three months ended				Nine months ended
	September 30,				September 30,
(dollars in thousands, except per share amounts)	2019		2018		2019		2018
Numerator:
Net income	$	767	$	3,916	$	4,075	$	10,079
Denominator:
Weighted average number of shares of common stock outstanding  (A)		8,787,837		8,699,953		8,780,590		7,931,783
Weighted average effect of dilutive share-based compensation		91,604		252,796		89,650		234,976
Diluted weighted average number of shares of common stock outstanding		8,879,441		8,952,749		8,870,240		8,166,759
Net income per common share:
Net income per common share - Basic	$	0.09	$	0.45	$	0.46	$	1.27
Net income per common share - Diluted	$	0.09	$	0.44	$	0.46	$	1.23

(A) The three and nine months ended September 30, 2019 and the three months ended September 30, 2018 include 1,408,163 shares in the aggregate issued on May 25 and June 5, 2018 as part of an underwritten public offering by the Company. The impact of this common stock issuance on the weighted average number of shares outstanding for the nine months ended September 30, 2018 is approximately 658,000.

On May 25, 2018, the Company completed an underwritten, public offering involving the issuance and sale by the Company of 1,224,490 shares of common stock at a public offering price of $24.50 per share. In addition, the Company granted the underwriters a 30-day option to purchase up to an additional 183,673 shares of common stock. On June 1, 2018, the underwriters exercised the option in full, and an additional 183,673 shares of common stock were issued and sold on June 5, 2018. The public offering resulted in gross proceeds to the Company of approximately $34.5 million, or $32.2 million net of the underwriting discount and other offering fees and expenses. We used the net proceeds from the public offering to repay amounts outstanding under the Company’s revolving credit facility.

We had options to purchase 609,750 and 236,000 shares of common stock outstanding at a weighted average price of $26.71 and $34.53 for the three months ended September 30, 2019 and 2018, respectively, which were excluded in the computation of diluted net income per common share. We had options to purchase 609,750 and 261,000 shares of common stock outstanding at a weighted average price of $26.71 and $33.86 for the nine months ended September 30, 2019 and 2018, respectively, which were excluded in the computation of diluted net income per common share. These options were not included in the computation of diluted net income per common share because their exercise prices were greater than the average market price of our common stock.