Net income (loss) per common share

6 Months Ended

Jun. 30, 2011

Net income (loss) per common share

Note 24 – Net income (loss) per common share

The following table sets forth the computation of net income (loss) per common share (“EPS”), basic and diluted, for the quarters and six months ended June 30, 2011 and 2010:

	Quarter ended June 30,						Six months ended June 30,
(In thousands, except per share information)	2011			2010			2011			2010
Net income (loss)	$	110,685		$	(44,489	)	$	120,817		$	(129,544	)
Preferred stock dividends		(931	)		—			(1,861	)		—
Deemed dividend on preferred stock[1]		—			(191,667	)		—			(191,667	)
Net income (loss) applicable to common stock	$	109,754		$	(236,156	)	$	118,956		$	(321,211	)
Average common shares outstanding		1,021,225,911			853,010,208			1,021,380,199			746,598,082
Average potential dilutive common shares		670,230			—			1,162,996			—
Average common shares outstanding - assuming dilution		1,021,896,141			853,010,208			1,022,543,195			746,598,082
Basic and dilutive EPS	$	0.11		$	(0.28	)	$	0.12		$	(0.43	)

[1] Non-cash beneficial conversion, resulting from the conversion of contingently convertible perpetual non-cumulative preferred stock into shares of the Corporation’s common stock. The beneficial conversion was recorded as a deemed dividend to the preferred stockholders reducing retained earnings, with a corresponding offset to surplus (paid in capital), and thus did not affect total stockholders’ equity or the book value of the common stock.

Potential common shares consist of common stock issuable under the assumed exercise of stock options and restricted stock awards using the treasury stock method. This method assumes that the potential common shares are issued and the proceeds from exercise, in addition to the amount of compensation cost attributed to future services, are used to purchase common stock at the exercise date. The difference between the number of potential shares issued and the shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Warrants, stock options, and restricted stock awards that result in lower potential shares issued than shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect in earnings per common share.

For the quarter ended and six months ended June 30, 2011, there were 2,103,034 and 2,112,275 weighted average antidilutive stock options outstanding, respectively (June 30, 2010 – 1,272,058 and 2,541,337). Additionally, the Corporation has outstanding a warrant issued to the U.S. Treasury to purchase 20,932,836 shares of common stock, which have an antidilutive effect at June 30, 2011.