Net Income Per Common Share (Tables)

9 Months Ended

Sep. 30, 2016

Calculation of Basic Net Income Per Share

The following table presents the calculation of basic net income per share for periods presented:

(in thousands, except per share data):

	Three months ended September 30, 2016			Three months ended September 30, 2015			Nine months ended September 30, 2016			Nine months ended September 30, 2015
Numerator for basic net (loss) income per share:
Net (loss) income	$	(16,645	)	$	(3,919	)	$	61,314		$	(71,901	)
Less: Series B preferred stock dividends		4,500			4,500			13,500			13,248
Less: undistributed earnings attributed to participating securities (basic calculation)		—			—			27,625			—
Basic net (loss) income attributable to common stockholders	$	(21,145	)	$	(8,419	)	$	20,189		$	(85,149	)
Denominator for basic net (loss) income per share:
Weighted-average shares outstanding		206,380,800			206,168,035			206,261,993			204,307,431
Weighted-average unvested restricted shares outstanding		(4,039,591	)		(4,197,396	)		(4,014,718	)		(2,636,314	)
Denominator for basic net (loss) income per share		202,341,209			201,970,639			202,247,275			201,671,117
Basic net (loss) income per share attributable to common stockholders	$	(0.10	)	$	(0.04	)	$	0.10		$	(0.42	)

Calculation of Diluted Net Income Per Share

The following table presents the calculation of diluted net income per share for periods presented:

(in thousands, except per share data):

	Three months ended September 30, 2016			Three months ended September 30, 2015			Nine months ended September 30, 2016			Nine months ended September 30, 2015
Numerator for diluted net (loss) income per share:
Net (loss) income	$	(16,645	)	$	(3,919	)	$	61,314		$	(71,901	)
Less: Series B preferred stock dividends		4,500			4,500			13,500			13,248
Less: undistributed earnings attributed to participating securities (diluted calculation)		—			—			26,241			—
Diluted net (loss) income attributable to common stockholders	$	(21,145	)	$	(8,419	)	$	21,573		$	(85,149	)
Denominator for diluted net (loss) income per share:
Weighted-average shares outstanding		206,380,800			206,168,035			206,261,993			204,307,431
Weighted-average unvested restricted shares outstanding		(4,039,591	)		(4,197,396	)		(4,014,718	)		(2,636,314	)
Effect of dilutive potential shares		—			—			35,327,739			—
Denominator for diluted net (loss) income per share		202,341,209			201,970,639			237,575,014			201,671,117
Diluted net (loss) income per share attributable to common stockholders	$	(0.10	)	$	(0.04	)	$	0.09		$	(0.42	)

Schedule of Potential Dilutive Common Shares

The following table summarizes shares subject to exercise or vesting conditions as more fully described in Note 9: Capital Stock. These shares could potentially be dilutive in future periods if we realize net income attributable to common and participating stockholders and the contingent or unvested stock is converted to WMIH common stock. The cash payment of $84.4 million, which would be received upon exercise of the warrants, has not been considered as an offset to the dilutive shares under warrants outstanding below.

	Potential dilution to common
	Minimum shares		Maximum shares
Restricted shares subject to vesting		4,039,591		4,039,591
Series A Preferred Stock		10,065,629		10,065,629
Warrants outstanding		61,400,000		61,400,000
Dilutive shares to be issued if Series B conversion is below $2.25		—		1,015,872
Series B Preferred Stock		266,666,667		342,857,143
Potential dilutive shares if converted to common		342,171,887		419,378,235