NET INCOME PER COMMON SHARE

9 Months Ended

Sep. 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 September 30						Nine Months Ended September 30
	2012			2011			2012			2011
Basic net income per common share
Numerator for basic net income per common share:
Net income	$	40,037		$	41,003		$	128,542		$	118,236
Series A and B preferred share dividends		(5,270	)		(5,105	)		(15,751	)		(15,223	)
Unvested stock award participation in earnings		(91	)		(148	)		(296	)		(434	)
	$	34,676		$	35,750		$	112,495		$	102,579
Denominator for basic net income per common share:
Weighted average common shares outstanding		98,581			84,147			94,324			77,852
Average unvested stock awards outstanding		(510	)		(465	)		(516	)		(461	)
		98,071			83,682			93,808			77,391
	$	0.35		$	0.43		$	1.20		$	1.33
Diluted net income per common share
Numerator for diluted net income per common share:
Net income	$	40,037		$	41,003		$	128,542		$	118,236
Dividends on antidilutive convertible preferred shares		(5,195	)		(5,031	)		(15,528	)		(14,999	)
Unvested stock award participation in earnings		(91	)		(148	)		(296	)		(434	)
	$	34,751		$	35,824		$	112,718		$	102,803
Denominator for diluted net income per common share:
Weighted average common shares outstanding		98,581			84,147			94,324			77,852
Average unvested stock awards outstanding		(510	)		(465	)		(516	)		(461	)
Net effect of dilutive stock and option awards		132			77			119			74
Net effect of dilutive convertible preferred shares		309			309			309			309
		98,512			84,068			94,236			77,774
	$	0.35		$	0.43		$	1.20		$	1.32

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 September 30				Nine Months  Ended September 30
	2012		2011		2012		2011
Antidilutive convertible preferred shares		16,493		16,024		16,493		16,024
Antidilutive equity awards excludable under the treasury stock method:
Shares issuable under option awards		10		10		10		10
Unvested stock awards		2		—		2		—