NET INCOME PER COMMON SHARE

6 Months Ended

Jun. 30, 2012

NET INCOME PER COMMON SHARE

NOTE 3 — NET INCOME PER COMMON SHARE

Basic net income 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 net income 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 net income 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 net income per common 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 net income per common share were as follows (dollars in thousands, except per share amounts):

	Quarter Ended June 30						Six Months Ended June 30
	2012			2011			2012			2011
Basic net income per common share
Numerator for basic net income per common share:
Net income	$	43,335		$	42,541		$	88,505		$	77,233
Series A and B preferred share dividends		(5,268	)		(5,060	)		(10,481	)		(10,118	)
Unvested stock award participation in earnings		(100	)		(145	)		(206	)		(274	)
	$	37,967		$	37,336		$	77,818		$	66,841
Denominator for basic net income per common share:
Weighted average common shares outstanding		94,362			77,631			92,171			74,652
Average unvested stock awards outstanding		(505	)		(460	)		(518	)		(459	)
		93,857			77,171			91,653			74,193
	$	0.40		$	0.48		$	0.85		$	0.90
Diluted net income per common share
Numerator for diluted net income per common share:
Net income	$	43,335		$	42,541		$	88,505		$	77,233
Dividends on antidilutive convertible preferred shares		(5,194	)		(4,985	)		(10,332	)		(9,968	)
Unvested stock award participation in earnings		(100	)		(145	)		(206	)		(274	)
	$	38,041		$	37,411		$	77,967		$	66,991
Denominator for diluted net income per common share:
Weighted average common shares outstanding		94,362			77,631			92,171			74,652
Average unvested stock awards outstanding		(505	)		(460	)		(518	)		(459	)
Net effect of dilutive stock and option awards		121			80			111			73
Net effect of dilutive convertible preferred shares		308			309			309			309
		94,286			77,560			92,073			74,575
	$	0.40		$	0.48		$	0.85		$	0.90

Potentially dilutive securities excluded from the computation of net income per common 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
	2012		2011		2012		2011
Antidilutive convertible preferred shares		16,493		15,865		16,493		15,865
Antidilutive equity awards excludable under the treasury stock method:
Shares issuable under option awards		10		10		10		10
Unvested stock awards		3		–		3		–