Earnings per Common Share (Tables)

6 Months Ended

Jun. 30, 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 shares using the “if converted” method.


	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Basic
Net income	$	2,240	$	1,657	$	4,951	$	3,570
Preferred stock dividends and discount accretion		406		290		1,061		580

Net income available to common shareholders—basic	$	1,834	$	1,367	$	3,890	$	2,990

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

Basic earnings per common share	$	0.24	$	0.18	$	0.50	$	0.39

Diluted
Net income available to common shareholders—basic	$	1,834	$	1,367	$	3,890	$	2,990
Preferred stock dividends on convertible preferred stock		406		—		795		—

Net income available to common shareholders—diluted	$	2,240	$	1,367	$	4,685	$	2,990

Weighted average common shares outstanding for basic earnings per common share		7,707,917		7,707,917		7,707,917		7,707,917
Add: Dilutive effects of convertible preferred shares		3,196,931		—		3,196,931		—

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

Diluted earnings per common share	$	0.21	$	0.18	$	0.43	$	0.39