Earnings per Common Share

6 Months Ended

Jun. 30, 2015

(10) Earnings per Common Share

Basic earnings per share are computed as 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 the equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred stock using the “if converted” method.


	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
Basic
Net income	$	3,122	$	2,240	$	6,292	$	4,951
Preferred stock dividends		391		406		795		1,061

Net income available to common shareholders - basic	$	2,731	$	1,834	$	5,497	$	3,890


Weighted average common shares outstanding - basic		7,825,176		7,707,917		7,790,862		7,707,917


Basic earnings per common share	$	0.35	$	0.24	$	0.71	$	0.50


Diluted
Net income available to common shareholders - basic	$	2,731	$	1,834	$	5,497	$	3,890
Preferred stock dividends on convertible preferred stock		391		406		795		1,061

Net income available to common shareholders - diluted	$	3,122	$	2,240	$	6,292	$	4,951

Weighted average common shares outstanding for basic earnings per common share basic		7,825,176		7,707,917		7,790,862		7,707,917
Add: Dilutive effects of convertible perferred shares		3,079,665		3,196,931		3,113,980		3,196,931
Add: Dilutive effects of unearned restricted stock		92		—		—		—


Average shares and dilutive potential common shares outstanding - diluted		10,904,933		10,904,848		10,904,842		10,904,848

Diluted earnings per common share	$	0.29	$	0.21	$	0.58	$	0.43

For the three-month period ended June 30, 2015 there were 3,079,665 dilutive shares related to the Company’s convertible preferred stock. For the six-month period ended June 30, 2015 there were 3,113,980 dilutive shares related to the Company’s convertible preferred stock. For the three- and six- month period ended June 30, 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.

For the three-month period ended June 30, 2015 there were 92 dilutive shares related to the Company’s restricted stock. For the six-month period ended June 30, 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 June 30, 2014, there was no non-vested restricted stock outstanding. There were no stock options outstanding during the three- and six- month periods ended June 30, 2015 and 2014.