Earnings per Common Share

6 Months Ended

Jun. 30, 2016

(9) Earnings per Common Share

Basic earnings per common share are computed as net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under the equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred stock using the “if converted” method.


	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Basic
Net income	$	5,181	$	3,122	$	9,906	$	6,292
Preferred stock dividends		391		391		782		795

Net income available to common shareholders - basic	$	4,790	$	2,731	$	9,124	$	5,497


Weighted average common shares outstanding - basic		7,877,119		7,842,159		7,861,444		7,800,808


Basic earnings per common share	$	0.61	$	0.35	$	1.16	$	0.70


Diluted
Net income available to common shareholders - basic	$	4,790	$	2,731	$	9,124	$	5,497
Preferred stock dividends		391		391		782		795

Net income available to common shareholders - diluted	$	5,181	$	3,122	$	9,906	$	6,292

Weighted average common shares outstanding for basic earnings per common share basic		7,877,119		7,842,159		7,861,444		7,800,808
Add: Dilutive effects of convertible preferred shares		3,074,402		3,079,665		3,076,323		3,113,980


Average shares and dilutive potential common shares outstanding - diluted		10,951,521		10,921,824		10,937,767		10,914,788


Diluted earnings per common share	$	0.47	$	0.29	$	0.91	$	0.58

For the three-month period ended June 30, 2016 there were 3,074,402 dilutive shares related to the Company’s convertible preferred stock. For the six-month period ended June 30, 2016 there were 3,076,324 dilutive shares related to the Company’s convertible preferred stock. For the three-month period ended June 30, 2015 there were 3,079,665 dilutive shares related to the Company’s convertible preferred stock. For the six-month period ended June 30, 2015 there were 3,113,980 dilutive shares related to the Company’s convertible preferred stock. Under the “if converted” method, all convertible preferred shares are assumed to be converted into common shares at the corresponding conversion rate. These additional shares are then added to the common shares outstanding to calculate diluted earnings per share.