Earnings per Common Share

9 Months Ended

Sep. 30, 2016

(9) Earnings per Common Share

Basic earnings per common 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 Company’s 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 September 30,				Nine months ended September 30,
	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Basic
Net income	$	3,680	$	3,253	$	13,586	$	9,546
Preferred stock dividends		374		391		1,156		1,186

Net income available to common shareholders - basic	$	3,306	$	2,862	$	12,430	$	8,360


Weighted average common shares outstanding - basic		8,042,303		7,843,578		7,922,170		7,815,222


Basic earnings per common share	$	0.41	$	0.36	$	1.57	$	1.07


Diluted
Net income available to common shareholders - basic	$	3,306	$	2,862	$	12,430	$	8,360
Preferred stock dividends		374		391		1,156		1,186

Net income available to common shareholders - diluted	$	3,680	$	3,253	$	13,586	$	9,546

Weighted average common shares outstanding for basic earnings per common share basic		8,042,303		7,843,578		7,922,170		7,815,222
Add: Dilutive effects of convertible preferred shares		2,922,609		3,078,245		3,024,712		3,101,937


Average shares and dilutive potential common shares outstanding - diluted		10,964,912		10,921,823		10,946,882		10,917,159


Diluted earnings per common share	$	0.34	$	0.30	$	1.24	$	0.87

For the three-month period ended September 30, 2016 there were 2,922,609 dilutive shares related to the Company’s convertible preferred stock. For the nine-month period ended September 30, 2016 there were 3,024,712 dilutive shares related to the Company’s convertible preferred stock. For the three-month period ended September 30, 2015 there were 3,078,245 dilutive shares related to the Company’s convertible preferred stock. For the nine-month period ended September 30, 2015 there were 3,101,937 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.