Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

4. Earnings (Loss) Per Share

A company that has participating security holders (for example, unvested restricted stock that has non-forfeitable dividend rights) is required to utilize the two-class method for purposes of calculating earnings (loss) per share (“EPS”). The two-class method is an allocation of earnings/(loss) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings/(loss) for the reporting period are allocated between common shareholders and other security holders, based on their respective rights to receive distributed earnings (i.e., dividends) and undistributed earnings (i.e., net income or loss). Currently, we have one class of security and we have participating security holders consisting of shareholders of unvested restricted stock. The following table shows basic and diluted EPS calculations:

	Three Months Ended March 31,
	2013			2012
		(Dollars in thousands, except per share amounts)
Basic and Diluted Earnings Per Common Share:
Net income	$	22,516		$	2,265
Less: distributed and undistributed earnings allocated to participating securities		(375	)		(160	)
Net income attributable to common stockholders	$	22,141		$	2,105
Basic weighted-average shares outstanding		48,342,145			47,311,840
Dilutive effect of common stock equivalents		580,190			71,081
Diluted weighted-average common shares outstanding		48,922,335			47,382,921
Basic Earnings Per Common Share	$	0.46		$	0.04
Diluted Earnings Per Common Share	$	0.45		$	0.04

Diluted EPS includes the dilutive effect of common stock equivalents and is computed using the weighted-average number of common stock and common stock equivalents outstanding during the reporting period. Common stock equivalents include stock options. Diluted EPS for the three months ended March 31, 2013 and 2012 excluded options to purchase approximately 2.9 million shares and 5.0 million shares, respectively, of common stock because the effect of their inclusion would be anti-dilutive.