Earnings Per Share

3 Months Ended

Mar. 31, 2016

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-month period ended March 31, 2016 and 2015 were as follows:



	Three months ended March 31,
	2016			2015
Basic Net Income per Common Share
Available to Common Stockholders:
Net income	$	4,806,000		$	4,039,000
Preferred stock dividends	(550,000		)	(550,000		)
Net income available to common stockholders	$	4,256,000		$	3,489,000
Weighted average common shares outstanding	8,455,507			7,024,678
Basic earnings per common share	$	0.50		$	0.50
Diluted Net Income per Common Share
Available to Common Stockholders:
Net income available to common stockholders	$	4,256,000		$	3,489,000
Effect of assumed preferred stock conversion	550,000			550,000
Net income applicable to diluted earnings per share	$	4,806,000		$	4,039,000
Weighted average common shares outstanding	8,455,507			7,024,678
Dilutive potential common shares:
Assumed conversion of stock options	178			—
Restricted stock awarded	5,232			9,382
Assumed conversion of preferred stock	1,355,348			1,355,348
Dilutive potential common shares	1,360,758			1,364,730
Diluted weighted average common shares outstanding	9,816,265			8,389,408
Diluted earnings per common share	$	0.49		$	0.48

The following shares were not considered in computing diluted earnings per share for the three-month periods ended March 31, 2016 and 2015 because they were anti-dilutive:

Three months ended March 31,

Stock options to purchase shares of common stock