Earnings Per Common Share

6 Months Ended

Jun. 30, 2011

Earnings Per Common Share

Earnings Per Common Share

NOTE 3 — EARNINGS PER COMMON SHARE

Basic earnings per common share is computed by dividing net income, after deducting preferred share dividends and adjusting for the impact of unvested stock awards deemed to be participating securities, by the weighted average number of common shares outstanding, calculated excluding unvested stock awards. Diluted earnings per common share is computed by dividing net income, after deducting dividends on convertible preferred shares when such shares are antidilutive and similar adjustments for participating securities, by the weighted average number of common shares and common share equivalents outstanding calculated excluding unvested stock awards, giving effect to equity awards and convertible preferred shares when such awards and shares are dilutive. For calculation purposes the Series A and B preferred shares are considered dilutive whenever basic earnings per common share exceeds each Series' dividend divided by the conversion rate applicable for that period. Unvested stock awards that are deemed participating securities are included in the calculation of diluted earnings per share, if dilutive, under either the two class method or the treasury stock method, depending upon which method produces the more dilutive result.

Components of the computation of basic and diluted earnings per common share were as follows (dollars in thousands, except per share amounts):

	Quarter Ended June 30						Six Months Ended June 30
	2011			2010			2011			2010
Basic earnings per common share
Numerator for basic earnings per common share:
Net income	$	42,541		$	29,759		$	77,233		$	70,196
Series A and B preferred share dividends		(5,060	)		(5,059	)		(10,118	)		(10,117	)
Unvested stock award participation in earnings		(145	)		(138	)		(274	)		(333	)
	$	37,336		$	24,562		$	66,841		$	59,746
Denominator for basic earnings per common share:
Weighted average common shares outstanding		77,631			70,124			74,652			69,752
Average unvested stock awards outstanding		(460	)		(390	)		(459	)		(388	)
		77,171			69,734			74,193			69,364
		$0.48			$0.35			$0.90			$0.86
Diluted earnings per common share
Numerator for diluted earnings per common share:
Net income	$	42,541		$	29,759		$	77,233		$	70,196
Dividends on antidilutive convertible preferred shares		(4,985	)		(4,983	)		(9,968	)		(9,966	)
Unvested stock award participation in earnings		(145	)		(138	)		(274	)		(333	)
	$	37,411		$	24,638		$	66,991		$	59,897
Denominator for diluted earnings per common share:
Weighted average common shares outstanding		77,631			70,124			74,652			69,752
Average unvested stock awards outstanding		(460	)		(390	)		(459	)		(388	)
Net effect of dilutive stock and option awards		80			28			73			42
Net effect of dilutive convertible preferred shares		309			310			309			310
		77,560			70,072			74,575			69,716
		$0.48			$0.35			$0.90			$0.86

Potentially dilutive securities excluded from the computation of earnings per share because the effect of inclusion was antidilutive during the indicated periods were as follows (in thousands):

	Quarter Ended June 30				Six Months Ended June 30
	2011		2010		2011		2010
Antidilutive convertible preferred shares		15,865		15,819		15,865		15,819
Antidilutive equity awards excludable under the treasury stock method:
Shares issuable under option awards		10		70		10		40
Unvested stock awards		–		202		–		111