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