Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

Earnings Per Share

Note 12.  Earnings Per Share

Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the reporting period.  Diluted earnings per common share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares.  Potentially dilutive common shares are calculated using the treasury stock method and include incremental shares issuable upon exercise of outstanding stock options, other share-based compensation awards and any other security in which its conversion / exercise may result in the issuance of common stock, such as the warrant the Company issued to the U.S. Treasury during 2009 or the Series C Perpetual Preferred Stock the Company issued during 2010.  The computation of diluted earnings per common share excludes the impacts of the assumed exercise or issuance of securities that would have an anti-dilutive effect, which can occur when the Company reports a net loss or when the market price for the Company’s stock falls below the exercise price of equity awards issued by the Company.  For the three months ended June 30, 2013 and 2012, common stock equivalents, primarily options, totaling approximately 330,000 shares and 213,000 shares, respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive.  For the six months ended June 30, 2013 and 2012, common stock equivalents, primarily options, totaling approximately 328,000 shares and 534,000 shares, respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive.

The following table sets forth the number of shares used in the calculation of both basic and diluted earnings per common share:

	For the Three Months Ended June 30,
	2013				2012
	Net				Net
(dollar amounts in thousands except per share data)	Income			Shares	Income			Shares
Net income	$	2,716			$	1,897
Dividends and accretion on preferred stock	(359		)		(375		)
Net income available to common shareholders	$	2,357			$	1,522
Weighted average shares outstanding				25,130,299				25,076,226
Basic earnings per common share	$	0.09			$	0.06
Dilutive effect of share-based compensation awards, common stock warrants, and convertible perpetual preferred stock				1,412,969				1,322,891
Weighted average diluted shares outstanding				26,543,268				26,399,117
Diluted earnings per common share	$	0.09			$	0.06

	For the Six Months Ended June 30,
	2013				2012
	Net				Net
(dollar amounts in thousands except per share data)	Income			Shares	Income			Shares
Net income	$	6,446			$	3,482
Dividends and accretion on preferred stock	(717		)		(756		)
Net applicable to common shareholders	$	5,729			$	2,726
Weighted average shares outstanding				25,121,151				25,066,945
Basic earnings per common share	$	0.23			$	0.11
Dilutive effect of share-based compensation awards, common stock warrant, and convertible perpetual preferred stock				1,382,969				1,248,079
Weighted average diluted shares outstanding				26,504,120				26,315,024
Diluted earnings per common share	$	0.22			$	0.10