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Earnings Per Share
 9 Months Ended
Sep. 30, 2015
Earnings Per Share [Abstract]  
Earnings Per Share

8.

EARNINGS PER SHARE

Basic earnings per share (“EPS”) is based on the weighted average number of shares of common stock outstanding for the period. Diluted EPS is computed in a similar manner to basic EPS after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested.

In accordance with ASC Topic 260 “Earnings Per Share”, the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings.  Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method.  The outstanding restricted shares of stock that were issued on July 8, 2015, are considered participating securities.

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted net income per share (dollars in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2015

 

 

September 30, 2014

 

 

September 30, 2015

 

 

September 30, 2014

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3,847

 

 

$

2,690

 

 

$

15,788

 

 

$

3,157

 

Less:  income allocable to participating securities

 

 

(49

)

 

 

—

 

 

 

(205

)

 

 

—

 

Income allocable to common shares

 

$

3,798

 

 

$

2,690

 

 

$

15,583

 

 

$

3,157

 

Add back:  undistributed earnings allocable to participating securities

 

 

49

 

 

 

—

 

 

 

205

 

 

 

—

 

Less:  undistributed earnings reallocated to participating securities

 

 

(49

)

 

 

—

 

 

 

(200

)

 

 

—

 

Numerator for diluted earnings per share

 

$

3,798

 

 

$

2,690

 

 

$

15,588

 

 

$

3,157

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

   outstanding

 

 

50,315,455

 

 

 

51,056,462

 

 

 

50,315,455

 

 

 

49,040,344

 

Adjustment for vested restricted stock

 

 

6,735,229

 

 

 

-

 

 

 

5,972,524

 

 

 

-

 

Shares for calculating basic EPS

 

 

57,050,684

 

 

 

51,056,462

 

 

 

56,287,979

 

 

 

49,040,344

 

Dilutive effect of unvested restricted stock

 

 

1,317,146

 

 

 

1,921,589

 

 

 

1,483,701

 

 

 

2,182,704

 

Shares for calculating diluted EPS

 

 

58,367,830

 

 

 

52,978,051

 

 

 

57,771,680

 

 

 

51,223,048

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

 

$

0.05

 

 

$

0.28

 

 

$

0.06

 

Diluted

 

$

0.07

 

 

$

0.05

 

 

$

0.27

 

 

$

0.06