Earnings per Common Share (Tables)

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Basic
Net income	$	2,306	$	1,566	$	7,257	$	5,136
Preferred stock dividends		406		289		1,467		869

Net income available to common shareholders - basic	$	1,900	$	1,277	$	5,790	$	4,267


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


Basic earnings per common share	$	0.25	$	0.17	$	0.75	$	0.55


Diluted
Net income available to common shareholders - basic	$	1,900	$	1,277	$	5,790	$	4,267
Preferred stock dividends on convertible preferred stock		406		—		1,201		—

Net income available to common shareholders - diluted	$	2,306	$	1,277	$	6,991	$	4,267

Weighted average common shares outstanding for earnings per common share basic		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 - diluted		10,904,848		7,707,917		10,904,848		7,707,917


Diluted earnings per common share	$	0.21	$	0.17	$	0.64	$	0.55