Stockholders’ Equity and EPS

Common Stock

In the second quarter of 2014, to support the continued growth of our balance sheet, we completed a registered public offering of 4,485,000 shares of our common stock at an offering price of $101.00 per share. We received net proceeds of $434.9 million after deducting underwriting discounts and commissions.

EPS

Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options and restricted stock units outstanding under our equity incentive plans and our ESPP. Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive. The following is a reconciliation of basic EPS to diluted EPS for the three and nine months ended September 30, 2014 and 2013:



	Three months ended September 30,				Nine months ended September 30,
(Dollars and shares in thousands, except per share amounts)	2014		2013		2014		2013
Numerator:
Net income available to common stockholders	$	62,995	$	67,621	$	205,093	$	157,096
Denominator:
Weighted average common shares outstanding-basic	50,752		45,580		48,281		45,180
Weighted average effect of dilutive securities:
Stock options and ESPP	534		429		580		405
Restricted stock units	285		193		339		180
Denominator for diluted calculation	51,571		46,202		49,200		45,765
Earnings per common share:
Basic	$	1.24	$	1.48	$	4.25	$	3.48
Diluted	$	1.22	$	1.46	$	4.17	$	3.43

The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation as they were deemed to be antidilutive for the three and nine months ended September 30, 2014 and 2013:



	Three months ended September 30,		Nine months ended September 30,
(Shares in thousands)	2014	2013	2014	2013
Stock options	241	343	140	546
Restricted stock units	1	—	2	1
Total	242	343	142	547

Accumulated Other Comprehensive Income

The following table summarizes the items reclassified out of accumulated other comprehensive income into the Consolidated Statements of Income (unaudited) for the three and nine months ended September 30, 2014 and 2013:



		Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands)	Income Statement Location	2014			2013			2014			2013
Reclassification adjustment for losses (gains) included in net income	Gains on investment securities, net	$	990		$	(219	)	$	17,411		$	(949	)
Related tax (benefit) expense	Income tax expense	(400		)	85			(7,030		)	363
Total reclassification adjustment for losses (gains) included in net income, net of tax		$	590		$	(134	)	$	10,381		$	(586	)