Earnings per Common Share

9 Months Ended

Sep. 30, 2019

(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 shares using the “if converted” method.

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2019		2018			2019		2018
Basic
Net income (loss)	$	7,708	$	(3,433	)	$	26,038	$	6,570
Preferred stock dividends		162		192			490		794
Net income (loss) available to common shareholders—basic	$	7,546	$	(3,625	)	$	25,548	$	5,776
Weighted average common shares outstanding—basic		15,577,371		11,627,093			15,604,410		10,775,577
Basic earnings (loss) per common share	$	0.48	$	(0.31	)	$	1.64	$	0.54
Diluted
Net income (loss) available to common shareholders—basic	$	7,546	$	(3,625	)	$	25,548	$	5,776
Preferred stock dividends		162		192			490		794
Net income (loss) available to common shareholders—diluted	$	7,708	$	(3,433	)	$	26,038	$	6,570
Weighted average common shares outstanding for basic earnings per common share		15,577,371		11,627,093			15,604,410		10,775,577
Add: Dilutive effects of convertible preferred shares		1,272,516		1,643,980			1,286,876		2,054,825
Average shares and dilutive potential common shares outstanding—diluted		16,849,887		13,271,073			16,891,286		12,830,402
Diluted earnings (loss) per common share	$	0.46	$	(0.31	)	$	1.54	$	0.51

For the three-month periods ended September 30, 2019 and September 30, 2018, there were 1,272,516 and 1,643,980, respectively, of average dilutive shares related to the Company’s convertible preferred shares. For the nine-month periods ended September 30, 2019 and September 30, 2018, there were 1,286,876 and 2,054,825, respectively, of average dilutive shares related to the Company’s convertible preferred shares. 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.