NOTE 22—STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

Series A Preferred Stock Offering—In April 2008, the Company issued 200,000 shares of 8% Non-Cumulative Perpetual Convertible Preferred Stock, Series A (“Series A”), with a liquidation preference of $1,000 per share. The Company received $194.1 million of additional Tier 1 qualifying capital, after deducting stock issuance costs. On May 1, 2013, the Company exercised its mandatory conversion right related to all the outstanding shares of its Series A preferred stock. At the conversion date, the remaining 85,710 shares of outstanding Series A Preferred Stock were converted to 5,594,080 shares of common stock.

Stock Repurchase Program—On January 23, 2013, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $200.0 million of the Company’s common stock. During 2013, the company completed the authorized repurchase program, repurchasing 8,026,807 shares at a weighted average price of $24.89 per share and a total cost of $200.0 million. In comparison, the Company repurchased 9,068,105 shares at a weighted average price of $22.02 per share and a total cost of $199.9 during the year ended December 31, 2012. The Company did not repurchase any shares during the years ended December 31, 2011.

Additionally, on July 17, 2013, the Company’s Board of Directors authorized a new stock repurchase program to buy back up to $100.0 million of its common stock. The Company did not repurchase any shares under this program during 2013.

Quarterly Dividends—The Company’s Board of Directors declared and paid quarterly preferred stock cash dividends of $20.00 per share on its Series A preferred stock during 2013 and 2012. Cash dividends totaling $3.4 million and $6.9 million were paid to the Company’s Series A preferred stock shareholders during the years ended December 31, 2013 and 2012, respectively. The Series A preferred stock were converted into common stock on May 1, 2013.

The Company also paid quarterly dividends on its common stock of $0.15 per share for each quarter of 2013. In comparison, the Company paid quarterly dividends on its common stock of $0.10 per share for each quarter of 2012. Total quarterly dividends amounting to $83.3 million and $57.6 million were paid to the Company’s common shareholders during the years ended December 31, 2013 and 2012, respectively.

Earnings Per Share (“EPS”) — The number of shares outstanding at December 31, 2013 was 137,630,896. The Company applies the two-class method of computing basic EPS. Under the two-class method, EPS is determined for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company’s restricted stocks, which receive dividends as declared, qualify as participating securities. Restricted stock units issued by the Company are not considered participating securities, as they do not have dividend distribution rights during the vesting period. Diluted EPS is calculated on the basis of the weighted average number of shares outstanding during the period plus potential dilutive shares.

The following table sets forth earnings per share calculations for the year ended December 31, 2013, 2012 and 2011:

	Year Ended December 31, 2013
	Net Income		Number of Shares	Per Share Amounts
	(In thousands, except per share data)
Net income	$	295,045
Less:
Preferred stock dividends	(3,428)
Earnings allocated to participating securities	(1,692)
Basic EPS – income allocated to common stockholders (1)	$	289,925	137,342	$	2.11
Effect of dilutive securities:
Stock options	—		71
Restricted stock units	196		327
Convertible preferred stock	3,428		1,834
Diluted EPS – income allocated to common stockholders (1)	$	293,549	139,574	$	2.10

	Year Ended December 31, 2012
	Net Income		Number of Shares	Per Share Amounts
	(In thousands, except per share data)
Net income	$	281,650
Less:
Preferred stock dividends	(6,857)
Earnings allocated to participating securities	(3,279)
Basic EPS – income allocated to common stockholders (1)	$	271,514	141,457	$	1.92
Effect of dilutive securities:
Stock options	—		29
Restricted stock units	47		118
Convertible preferred stock	6,857		5,571
Diluted EPS – income allocated to common stockholders (1)	$	278,418	147,175	$	1.89

	Year Ended December 31, 2011
	Net Income		Number of Shares	Per Share Amounts
	(In thousands, except per share data)
Net income	$	245,234
Less:
Preferred stock dividends	(6,857)
Basic EPS – income available to common stockholders	$	238,377	147,093	$	1.62
Effect of dilutive securities:
Stock options	—		62
Restricted stock awards	115		718
Convertible preferred stock	6,857		5,571
Stock warrants	—		23
Diluted EPS – income available to common stockholders	$	245,349	153,467	$	1.60

The following average outstanding stock options and restricted stock units for the years ended December 31, 2013, 2012 and 2011, respectively, were excluded from the computation of diluted EPS because including them would have had an antidilutive effect.

	For the Year Ended
	2013		2012		2011
	(In thousands)
Stock options	177		340		857
Restricted stock awards	10	(1)	5	(1)	317

(1) April 1, 2012, the Company revised its calculation of earnings per share to account for participating securities under the two-class method. This revision to the earnings per share calculation does not have an impact to previous periods as the amounts are immaterial.

Accumulated Other Comprehensive (Loss) Income — As of December 31, 2013, total accumulated other comprehensive loss was ($30.5) million which includes the following components: net unrealized loss on securities available for sale of ($30.5) million and unrealized gain on other asset investment of $79 thousand. As of December 31, 2012, total accumulated other comprehensive income was $4.7 million which includes the following components: net unrealized gain on securities available for sale of $4.6 million and unrealized gain on other asset investment of $26 thousand. As of December 31, 2011, total accumulated other comprehensive loss was ($33.9) million which includes the following components: net unrealized loss on securities available for sale of ($34.8) million, foreign exchange translation adjustment of $900 thousand and unrealized gain on other asset investment of $8 thousand.

Activity in accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2013, 2012, and 2011 was as follows:

	Unrealized gain (loss) on
	investment securities		Foreign currency		Unrealized gain (loss) on
	available-for-sale		translation adjustments		other asset investment		Total
	(In thousands)
Balance, December 31, 2010	$	(13,927)	$	1,664	$	(151)	$	(12,414)
Period Change	(20,921)		(764)		159		(21,526)
Balance, December 31, 2011	$	(34,848)	$	900	$	8	$	(33,940)
Period Change	39,491		(900)		18		38,609
Balance, December 31, 2012	$	4,643	$	—	$	26	$	4,669
Other comprehensive income before reclassifications	(28,169)		—		336		(27,833)
Amounts reclassified from AOCI	(7,012)		—		(283)		(7,295)
Net current period other comprehensive loss	(35,181)		—		53		(35,128)
Balance, December 31, 2013	$	(30,538)	$	—	$	79	$	(30,459)

Reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013, 2012, and 2011 was as follows:

	Amount Reclassified from
Details about Accumulated Other	Accumulated Other		Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income		Where Net Income is Presented
	(In thousands)
Year Ended December 31, 2013
Investment securities available for sale
Realized net gains on sale of securities	$	12,089	Net gain on sales of investment securities
	12,089
	(5,077)		Tax expense
	$	7,012	Net of tax
Other investments
Realized net gains on sale of other investments	$	488	Other operating income
	488
	(205)		Tax expense
	$	283	Net of tax
Total reclassifications	$	7,295
Year Ended December 31, 2012
Investment securities available for sale
Realized net gains on sale of securities	$	757	Net gain on sales of investment securities
	757
	(318)		Tax expense
	$	439	Net of tax
Other investments
Realized net gains on sale of other investments	$	23	Other operating income
	23
	(10)		Tax expense
	$	13	Net of tax
Total reclassifications	$	452
Year Ended December 31, 2011
Investment securities available for sale
Realized net gains on sale of securities	$	9,703	Net gain on sales of investment securities
	9,703
	(4,075)		Tax expense
	$	5,628	Net of tax
Other investments
Realized net gains on sale of other investments	$	61	Other operating income
	61
	(26)		Tax expense
	$	35	Net of tax
Total reclassifications	$	5,663

The following table sets forth the tax effects allocated to each component of other comprehensive (loss) income for the years ended December 31, 2013, 2012, and 2011:

			Tax
	Before-Tax		Expense		Net-of-Tax
	Amount		or Benefit		Amount
			(In thousands)
For the year ended December 31, 2013
Unrealized gain on investment securities available-for-sale:
Unrealized holding losses arising during period	$	(48,567)	$	20,398	$	(28,169)
Less: reclassification adjustment for gains included in income	(12,089)		5,077		(7,012)
Net unrealized loss	(60,656)		25,475		(35,181)
Noncredit-related impairment loss on securities	—		—		—
Unrealized gain on other asset investment	579		(243)		336
Less: reclassification adjustment for gains included in income	(488)		205		(283)
Other comprehensive loss	$	(60,565)	$	25,437	$	(35,128)

			Tax
	Before-Tax		Expense		Net-of-Tax
	Amount		or Benefit		Amount
			(In thousands)
For the year ended December 31, 2012
Unrealized gain on investment securities available-for-sale:
Unrealized holding gains arising during period	$	73,910	$	(31,042)	$	42,868
Less: reclassification adjustment for gains included in income	(757)		318		(439)
Net unrealized gains	73,153		(30,724)		42,429
Noncredit-related impairment loss on securities	(5,066)		2,128		(2,938)
Foreign currency translation adjustments	(1,552)		652		(900)
Unrealized gain on other asset investment	53		(22)		31
Less: reclassification adjustment for gains included in income	(23)		10		(13)
Other comprehensive income	$	66,565	$	(27,956)	$	38,609

			Tax
	Before-Tax		Expense		Net-of-Tax
	Amount		or Benefit		Amount
			(In thousands)
For the year ended December 31, 2011
Unrealized loss on investment securities available-for-sale:
Unrealized holding loss arising during period	$	(21,264)	$	8,931	$	(12,333)
Less: reclassification adjustment for gains included in income	(9,703)		4,075		(5,628)
Net unrealized loss	(30,967)		13,006		(17,961)
Noncredit-related impairment loss on securities	(5,103)		2,143		(2,960)
Foreign currency translation adjustments	(1,317)		553		(764)
Unrealized gain on other asset investment	334		(140)		194
Less: reclassification adjustment for gains included in income	(61)		26		(35)
Other comprehensive loss	$	(37,114)	$	15,588	$	(21,526)