Note 4 - Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

4.             Earnings Per Share     

A company that has participating securities (for example, holders of unvested restricted stock that has nonforfeitable dividend rights) is required to utilize the two-class method to calculate earnings per share (“EPS”) unless the treasury stock method results in lower 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/(loss)). Currently, we have one class of security and we have participating security holders consisting of shareholders of unvested restricted stock. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potential dilutive stock options outstanding. The following table shows basic and diluted EPS calculations:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(Dollars in thousands, except per share amounts)
Numerator
Net income	$	15,458		$	36,251		$	48,504		$	283,676
Less: distributed earnings allocated to participating securities		(48	)		-			(150	)		-
Less: undistributed earnings allocated to participating securities		(13	)		(294	)		(51	)		(2,609	)
Net income attributable to common stockholders (numerator for basic earnings per share)		15,397			35,957			48,303			281,067
Add back: undistributed earnings allocated to participating securities		13			294			51			2,609
Less: undistributed earnings reallocated to participating securities		(13	)		(293	)		(51	)		(2,586	)
Numerator for diluted earnings per share under two class method	$	15,397		$	35,958		$	48,303		$	281,090
Denominator
Weighted-average common shares outstanding		48,625,685			48,478,403			48,607,425			48,423,969
Add: dilutive effect of stock options		205,105			275,246			217,446			428,901
Denominator for diluted earnings per share under two class method		48,830,790			48,753,649			48,824,871			48,852,870
Basic Earnings Per Common Share	$	0.32		$	0.74		$	0.99		$	5.80
Diluted Earnings Per Common Share	$	0.32		$	0.74		$	0.99		$	5.75

Diluted EPS for the three and nine months ended September 30, 2014 excluded options to purchase approximately 4.3 million and 4.5 million shares, respectively, of common stock because the effect of their inclusion would be anti-dilutive. For the same periods in 2013, diluted EPS excluded options to purchase approximately 4.2 million and 3.4 million shares, respectively.