Earnings per Common Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings per Common Share

(9) 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,
	2015		2014
Basic
Net income	$	3,171	$	2,712
Preferred stock dividends		404		655
Net income available to common shareholders - basic	$	2,767	$	2,057
Weighted average common shares outstanding - basic		7,756,168		7,707,917
Basic earnings per common share	$	0.36	$	0.27
Diluted
Net income available to common shareholders - basic	$	2,767	$	2,057
Preferred stock dividends on convertible preferred stock		404		388
Net income available to common shareholders - diluted	$	3,171	$	2,445
Weighted average common shares outstanding for earnings per common share basic		7,756,168		7,707,917
Add: Dilutive effects of convertible preferred stock		3,148,676		3,196,931
Add: Dilutive effects of unearned restricted stock		—		—
Add: Dilutive effects of assumed exercises of stock options		—		—
Average shares and dilutive potential common shares outstanding - diluted		10,904,844		10,904,848
Diluted earnings per common share	$	0.29	$	0.22

At March 31, 2015, there were 16,983 shares of unvested restricted stock outstanding at a price of $10.82 per share that were not included in the computation of diluted earnings per share because they were anti-dilutive. At March 31, 2014, there was no non-vested restricted stock outstanding. There were no stock options outstanding during the three-month period ended March 31, 2015 and 2014.

For the three-month period ended March 31, 2015 there were 3,148,676 dilutive shares related to the Company’s convertible preferred stock. For the three-month period ended March 31, 2014 there were 3,196,931 dilutive shares related to the Company’s convertible preferred stock. Under the “if converted” method, all convertible preferred shares are assumed to be converted into common shares at the corresponding conversion rate. These additional shares are then added to the common shares outstanding to calculate diluted earnings per share.