Earnings Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding. Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the assumed conversion of the Company’s convertible preferred stock and the Company’s stock options, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the three and nine-month period ended September 30, 2015 and 2014 were as follows:



	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	3,663,000		$	3,915,000		$	11,858,000		$	11,551,000
Preferred stock dividends	(550,000		)	(1,105,000		)	(1,650,000		)	(3,313,000		)
Net income available to common stockholders	$	3,113,000		$	2,810,000		$	10,208,000		$	8,238,000
Weighted average common shares outstanding	8,421,397			5,881,681			7,553,468			5,881,974
Basic earnings per common share	$	0.37		$	0.48		$	1.35		$	1.40
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	3,113,000		$	2,810,000		$	10,208,000		$	8,238,000
Effect of assumed preferred stock conversion	550,000			1,105,000			1,650,000			3,313,000
Net income applicable to diluted earnings per share	$	3,663,000		$	3,915,000		$	11,858,000		$	11,551,000
Weighted average common shares outstanding	8,421,397			5,881,681			7,553,468			5,881,974
Dilutive potential common shares:
Restricted stock awarded	7,788			9,892			7,788			9,892
Assumed conversion of preferred stock	1,355,348			2,494,569			1,355,348			2,494,642
Dilutive potential common shares	1,363,136			2,504,461			1,363,136			2,504,534
Diluted weighted average common shares outstanding	9,784,533			8,386,142			8,916,604			8,386,508
Diluted earnings per common share	$	0.37		$	0.47		$	1.33		$	1.38

The following shares were not considered in computing diluted earnings per share for the three and nine-month periods ended September 30, 2015 and 2014 because they were anti-dilutive:



	Three months ended September 30,		Nine months ended September 30,
	2015	2014	2015	2014
Stock options to purchase shares of common stock	45,500	128,750	45,500	128,750