Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2014

Computation of Basic and Diluted Earnings per Common Share

Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under stock options, computed using the treasury stock method and the impact of the Company’s convertible preferred stock using the “if converted” method.


	Three months ended March 31,
	2014		2013
Basic
Net income	$	2,712	$	1,913
Preferred stock dividends and discount accretion		655		290

Net income available to common shareholders	$	2,057	$	1,623


Weighted average common shares outstanding		7,707,917		7,707,917


Basic earnings per common share	$	0.27	$	0.21


Diluted
Net income available to common shareholders - basic	$	2,057	$	1,623
Convertible preferred stock dividends		388		—

Net income available to common shareholders - diluted	$	2,445	$	1,623


Weighted average common shares outstanding for basic earnings per common share		7,707,917		7,707,917

Add: Dilutive effects of convertible preferred stock		3,196,931		—

Add: Dilutive effects of assumed exercises of stock options		—		—


Average shares and dilutive potential common shares outstanding		10,904,848		7,707,917


Diluted earnings per common share	$	0.22	$	0.21