Earnings Per Common Share

9 Months Ended

Sep. 30, 2012

Earnings Per Common Share [Abstract]

Earnings Per Common Share

Note 14 – Earnings Per Common Share

Nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of earnings per share pursuant to the two-class method.  The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested restricted stock awards qualify as participating securities. 

Net earnings, less any preferred dividends accumulated for the period (whether or not declared), is allocated between the common stock and participating securities pursuant to the two-class method.  Basic earnings per common share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested restricted shares. 

Diluted earnings per common share is computed in a similar manner, except that first the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares, excluding the participating securities, were issued using the treasury stock method. For all periods presented, warrants, stock options, certain restricted stock awards and restricted stock units are the only potentially dilutive non-participating instruments issued by the Company.  Next, we determine and include in diluted earnings per common share calculation the more dilutive effect of the participating securities using the treasury stock method or the two-class method. Undistributed losses are not allocated to the nonvested share-based payment awards (the participating securities) under the two-class method as the holders are not contractually obligated to share in the losses of the Company.

The following is a computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2012 and 2011:

(in thousands, except per share data)
	Three months ended				Nine months ended
	September 30,				September 30,
	2012		2011		2012		2011
NUMERATORS:
Net income	$	25,153	$	21,862	$	73,933	$	53,114
Less:
Dividends and undistributed earnings allocated to participating securities (1)		170		105		499		253
Net earnings available to common shareholders	$	24,983	$	21,757	$	73,434	$	52,861
DENOMINATORS:
Weighted average number of common shares outstanding - basic		111,899		114,540		111,928		114,576
Effect of potentially dilutive common shares (2)		252		151		231		193
Weighted average number of common shares outstanding - diluted		112,151		114,691		112,159		114,769
EARNINGS PER COMMON SHARE:
Basic	$	0.22	$	0.19	$	0.66	$	0.46
Diluted	$	0.22	$	0.19	$	0.65	$	0.46

(1) Represents dividends paid and undistributed earnings allocated to nonvested restricted stock awards.

(2) Represents the effect of the assumed exercise of warrants, assumed exercise of stock options, vesting of non-participating restricted shares, and vesting of restricted stock units, based on the treasury stock method.

The following table presents the weighted average outstanding securities that were not included in the computation of diluted earnings per common share because their effect would be anti-dilutive for the three and nine months ended September 30, 2012 and 2011.

(in thousands)
	Three months ended		Nine months ended
	September 30,		September 30,
	2012	2011	2012	2011
Stock options	1,141	1,827	1,313	1,845