Note 4 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

4 . Earnings Per Share     

ASC Topic 260,

Earnings Per Share

(“ASC 260”), requires a

company that has participating security holders (for example, holders of unvested restricted stock that has nonforfeitable dividend rights) to utilize the two-class method for calculating 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)). Our common shares outstanding are comprised of shareholder owned common stock and 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, excluding participating shares in accordance with ASC 260

.

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
	March 31,
	2016			2015
	(Dollars in thousands, except per share amounts)
Numerator
Net income	$	9,563		$	8,420
Less: distributed earnings allocated to participating securities		(40	)		(25	)
Less: undistributed earnings allocated to participating securities		-			-
Net income attributable to common stockholders (numerator for basic earnings per share)		9,523			8,395
Add back: undistributed earnings allocated to participating securities		-			-
Less: undistributed earnings reallocated to participating securities		-			-
Numerator for diluted earnings per share under two class method	$	9,523		$	8,395
Denominator
Weighted-average common shares outstanding		48,827,971			48,714,637
Add: dilutive effect of stock options		5,473			176,877
Denominator for diluted earnings per share under two class method		48,833,444			48,891,514
Basic Earnings Per Common Share	$	0.20		$	0.17
Diluted Earnings Per Common Share	$	0.20		$	0.17

Diluted EPS for the three months ended March 31, 2016 excluded options to purchase approximately 6.6 million shares of common stock because the effect of their inclusion would be anti-dilutive. For the same period in 2015, diluted EPS excluded options to purchase approximately 3.7 million shares.