4. Earnings/Loss per Share

Basic earnings per share exclude dilution and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that then shared in earnings. Potential dilution is excluded from computation of diluted per-share amounts when a net loss from operation exists.

Outstanding stock options with anti-dilutive effect were not included in the computation of diluted earnings per share. The following table sets forth earnings or loss per common stock share calculations:


	For the three months ended September 30,						For the nine months ended September 30,
(Dollars in thousands, except share and per share data)	2011			2010			2011			2010
Net income/(loss) attributable to Cathay General Bancorp	$	26,084		$	17,272		$	72,449		($	6,546	)
Dividends on preferred stock		(4,111	)		(4,098	)		(12,323	)		(12,286	)

Net income/(loss) available to common stockholders	$	21,973		$	13,174		$	60,126		($	18,832	)
Weighted-average shares:
Basic weighted-average number of common shares outstanding		78,640,308			78,520,612			78,628,477			76,584,138
Dilutive effect of weighted-average outstanding common share equivalents stock options		834			—			9,500			—

Diluted weighted-average number of common shares outstanding		78,641,142			78,520,612			78,637,977			76,584,138

Average stock options and warrants with anti-dilutive effect		6,294,961			6,911,096			6,265,913			6,946,976
Earnings/(loss) per common stock share:
Basic	$	0.28		$	0.17		$	0.76		($	0.25	)
Diluted	$	0.28		$	0.17		$	0.76		($	0.25	)