Earnings Per Common Share

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014 (dollars in thousands, except share and per share data):



	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2015		2014	2015	2014
Net income	$	2,633	2,718	8,590	6,652
Weighted average number of shares outstanding used in the calculation of basic earnings per common share	9,898,233		9,299,691	9,637,344	9,293,866
Add dilutive effect of:
Stock options	16,219		17,775	17,199	19,331
Stock warrants	91,336		87,547	88,296	93,913
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share	10,005,788		9,405,013	9,742,839	9,407,110
Earnings per common share:
Basic	$	0.26	0.30	0.89	0.72
Diluted	0.26		0.29	0.88	0.71

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 September 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.