Net Income Per Common Share

3 Months Ended

Mar. 31, 2016

Net Income Per Common Share

Net Income Per Common Share

Note 8 – Net Income Per Common Share

The Company determines basic earnings per share by dividing net income less preferred stock dividends by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by dividing net income less dividends on convertible preferred stock plus interest on convertible subordinated debt by the weighted average number of shares outstanding increased by both the number of shares that would be issued assuming the exercise of stock options under the Company’s 2003 and 2013 Stock Incentive Plans and the conversion of preferred stock and subordinated debt if dilutive.

	For the three months ended
	March 31,
(Dollars in thousands except shares and per share data)	2016		2015
Numerator for basic earnings per share:
Net Income	$	1,796	$	2,103
Less: Dividends on preferred stock		186		142
Net income available to common shareholders - basic	$	1,610	$	1,961
Numerator for diluted earnings per share:
Net income available to common shareholders	$	1,610	$	1,961
Add: Interest on convertible subordinated debt (tax effected)		342		—
Net income available to common shareholders - diluted	$	1,952	$	1,961
Denominator:
Total average shares outstanding		8,061,998		7,983,285
Effect of dilutive convertible subordinated debt		1,837,500		—
Effect of dilutive stock options		1,752		151,773
Total diluted average shares outstanding		9,901,250		8,135,058
Earnings Per Share - Basic	$	0.20	$	0.25
Earnings Per Share - Diluted	$	0.20	$	0.24