Earnings per Common Share

3 Months Ended

Mar. 31, 2016

13. EARNINGS PER COMMON SHARE

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding net of unvested shares of restricted stock.

Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the dilutive effect of potential common shares issuable for stock options, warrants and restricted shares, as calculated using the treasury stock method. Adjustments to the weighted average number of shares of common stock outstanding are made only when such adjustments dilute earnings per common share.

The following table sets forth the computation of basic and diluted earnings per common share:


	Three Months Ended
	March 31,
	2016		2015
Net income	$	26,132	$	40,343
Less: Preferred stock dividends		2,010		2,010

Net income available to common stockholders	$	24,122	$	38,333

Basic weighted average common shares outstanding		193,585,702		174,152,283
Net effect of dilutive stock options, warrants, restricted stock and convertible debt		1,292,220		1,673,693

Diluted weighted average common shares outstanding		194,877,922		175,825,976

Earnings per common share:
Basic	$	0.12	$	0.22

Diluted	$	0.12	$	0.22

For the three months ended March 31, 2016 and 2015, 15,501 and 24,272 shares of common stock, respectively, related to stock options and warrants were excluded from the computation of diluted earnings per common share because the exercise price of the shares was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive.