Note 5 - Earnings Per Share

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for each period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options, warrants, and convertible preferred stock, and are determined using the treasury stock method.

There were no anti-dilutive shares for the three or nine months ended September 30, 2019 or 2018.

On April 2, 2018, the Company exercised its option to convert all 437,500 outstanding shares of Series A Preferred Stock into shares of the Company’s common stock. The conversion ratio was one share of Series A Preferred Stock for one share of common stock. As of April 2, 2018, the Series A Preferred Stock was no longer deemed outstanding and all rights with respect to such stock ceased and terminated.

Information relating to the calculations of our income per common share is summarized as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(dollars in thousands, except for per share data)
Weighted-average shares outstanding - basic		12,776,911		12,695,136		12,775,104		12,541,032
Dilution		64,768		137,497		78,708		110,228
Weighted-average share outstanding - diluted		12,841,679		12,832,633		12,853,812		12,651,260

Net income available to common stockholders	$	2,381	$	2,165	$	7,166	$	5,898
Net income per share - basic	$	0.19	$	0.17	$	0.56	$	0.47
Net income per share - diluted	$	0.19	$	0.17	$	0.56	$	0.47