(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 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
	March 31,
	2018		2017
Basic
Net income	$	6,989	$	4,635
Preferred stock dividends		303		319
Net income available to common shareholders—basic	$	6,686	$	4,316
Weighted average common shares outstanding—basic		10,213,264		9,100,330
Basic earnings per common share	$	0.65	$	0.47
Diluted
Net income available to common shareholders—basic	$	6,686	$	4,316
Preferred stock dividends		303		319
Net income available to common shareholders—diluted	$	6,989	$	4,635
Weighted average common shares outstanding for basic earnings per common share		10,213,264		9,100,330
Add: Dilutive effects of convertible preferred shares		2,384,130		2,508,003
Average shares and dilutive potential common shares outstanding—diluted		12,597,394		11,608,333
Diluted earnings per common share	$	0.55	$	0.40

For the quarters ended March 31, 2018 and March 31, 2017, there were 2,384,130 and 2,508,003, respectively, of average 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.