9. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of shares outstanding during the period. All outstanding unvested restricted share awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common shareholders and, accordingly, are considered participating securities that are included in the two-class method of computing basic earnings per share. Both the unvested restricted shares and the assumed share-settlement of the accrued stock dividend to holders of the Series A Preferred Stock, and the related impacts to earnings, are considered when calculating earnings per share on a diluted basis with our diluted earnings per share being the more dilutive of the treasury stock or two-class methods. For the three and six months ended June 30, 2018 and 2017, the Company’s basic earnings per share is computed using the two-class method, and our diluted earnings per share is computed using the more dilutive of the treasury stock method or two-class method:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Shares outstanding
Weighted average common shares - basic		15,274,459		9,850,967		14,763,741		9,356,744
Effect of dilutive securities		289,858		182,062		294,446		151,203
Weighted average common shares, all classes		15,564,317		10,033,029		15,058,187		9,507,947

Calculation of Earnings per Share - basic
Net income	$	10,797	$	5,194	$	16,151	$	6,977
Less:
Net income allocated to preferred stockholders		4,580		177		8,175		723
Net income allocated to unvested restricted shares (1)		72		91		98		99
Net income attributable to common shareholders - two-class method	$	6,145	$	4,926	$	7,878	$	6,155

Weighted average common shares - basic		15,274,459		9,850,967		14,763,741		9,356,744
Earnings per share - basic	$	0.40	$	0.50	$	0.53	$	0.66

Calculation of Earnings per Share - diluted
Net income	$	10,797	$	5,194	$	16,151	$	6,977
Less:
Net income allocated to preferred stockholders		4,580		177		8,175		723
Net income attributable to common shareholders - two-class method	$	6,217	$	5,017	$	7,976	$	6,254

Weighted average common shares - diluted		15,564,317		10,033,029		15,058,187		9,507,947
Earnings per share - diluted	$	0.40	$	0.50	$	0.53	$	0.66


(1)	Unvested restricted shares of common stock participate in dividends with unrestricted shares of common stock on a 1:1 basis and thus are considered participating securities under the two-class method for the three and six months ended June 30, 2018 and 2017.