Earnings Per Common Share

6 Months Ended

Jun. 30, 2015

Earnings per Common Share

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options and warrants with proceeds used to purchase treasury shares at the average market price for the period. The computations are as follows for the three and six months ended June 30, 2015 and 2014 (dollars in thousands, except share and per share data):



	For the Three Months Ended June 30,			For the Six Months Ended June 30,
	2015		2014	2015	2014
Net income	$	3,123	2,611	5,957	3,934
Weighted average number of shares outstanding used in the calculation of basic earnings per common share	9,694,732		9,293,382	9,504,739	9,290,905
Add dilutive effect of:
Stock options	18,955		18,349	17,629	20,099
Stock warrants	91,041		90,612	86,682	96,960
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share	9,804,728		9,402,343	9,609,050	9,407,964
Earnings per common share:
Basic	$	0.33	0.28	0.63	0.42
Diluted	0.32		0.28	0.62	0.42

Options to purchase 12,962 and 18,118 shares of common stock at a weighted average price of $18.41 and $18.19 per share were outstanding at June 30, 2015 and 2014, respectively, but were not included in the computation of diluted earnings per common share because the exercise prices of the options were greater than the average market price of the common shares.