(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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Basic
Net income	$	3,014	$	3,596	$	10,003	$	8,231
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Weighted average common shares outstanding—basic		10,470,839		10,162,528		10,342,763		9,634,363
Basic earnings per common share	$	0.26	$	0.32	$	0.91	$	0.79
Diluted
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—diluted	$	3,014	$	3,596	$	10,003	$	8,231
Weighted average common shares outstanding for basic earnings per common share		10,470,839		10,162,528		10,342,763		9,634,363
Add: Dilutive effects of convertible preferred shares		2,144,497		2,431,349		2,263,652		2,469,465
Average shares and dilutive potential common shares outstanding—diluted		12,615,336		12,593,877		12,606,415		12,103,828
Diluted earnings per common share	$	0.24	$	0.29	$	0.79	$	0.68

For the three-month period ended June 30, 2018 there were 2,144,497 dilutive shares related to the Company’s convertible preferred stock. For the six-month period ended June 30, 2018 there were 2,263,652 dilutive shares related to the Company’s convertible preferred stock. For the three-month period ended June 30, 2017 there were 2,431,349 dilutive shares related to the Company’s convertible preferred stock. For the six-month period ended June 30, 2017 there were 2,469,465 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.