Earnings per Common Share

9 Months Ended

Sep. 30, 2020

(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,
	2020		2019		2020		2019
Basic
Net income	$	7,682	$	7,708	$	22,019	$	26,038
Preferred stock dividends		—		162		—		490
Net income available to common shareholders—basic	$	7,682	$	7,546	$	22,019	$	25,548
Weighted average common shares outstanding—basic		16,045,544		15,577,371		16,201,898		15,604,410
Basic earnings per common share	$	0.48	$	0.48	$	1.36	$	1.64
Diluted
Net income available to common shareholders—basic	$	7,682	$	7,546	$	22,019	$	25,548
Preferred stock dividends		—		162		0		490
Net income available to common shareholders—diluted	$	7,682	$	7,708	$	22,019	$	26,038
Weighted average common shares outstanding for basic earnings per common share		16,045,544		15,577,371		16,201,898		15,604,410
Add: Dilutive effects of convertible preferred shares		—		1,272,516		—		1,286,876
Average shares and dilutive potential common shares outstanding—diluted		16,045,544		16,849,887		16,201,898		16,891,286
Diluted earnings per common share	$	0.48	$	0.46	$	1.36	$	1.54

For the three- and nine-month periods ended September 30, 2019, there were 1,272,516 and 1,286,876, 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. Effective December 20, 2019, the Company redeemed all convertible preferred shares and corresponding depositary shares that remained outstanding.