EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2018

NOTE 3 – EARNINGS PER COMMON SHARE

	The calculations of earnings per common share for the quarters and nine-month periods ended September 30, 2018 and 2017 are as follows:

		Quarter Ended				Nine-Month Period Ended
		September 30,				September 30,
		2018		2017		2018		2017

(In thousands, except per share information)

Net income (loss)		$	36,323	$	(10,752)	$	100,503	$	42,787
Less: Preferred stock dividends			(669)		(669)		(2,007)		(2,007)
Net income (loss) attributable to common stockholders		$	35,654	$	(11,421)	$	98,496	$	40,780
Weighted-Average Shares:
Average common shares outstanding			216,149		214,187		215,516		213,812
Average potential dilutive common shares			626		-		1,068		2,322
Average common shares outstanding - assuming dilution			216,775		214,187		216,584		216,134
Earnings (loss) per common share:
Basic		$	0.16	$	(0.05)	$	0.46	$	0.19
Diluted		$	0.16	$	(0.05)	$	0.45	$	0.19

Earnings (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares issued and outstanding. Net income (loss) attributable to common stockholders represents net income (loss) adjusted for any preferred stock dividends, including any dividends declared, and any cumulative dividends related to the current dividend period that have not been declared as of the end of the period. Basic weighted-average common shares outstanding exclude unvested shares of restricted stock that do not contain non-forfeitable dividend rights.

Potential dilutive common shares consist of unvested shares of restricted stock that do not contain non-forfeitable dividend rights, performance units that do not contain non-forfeitable dividend rights if the performance condition is met as of the end of the reporting period, and warrants outstanding during the period using the treasury stock method. This method assumes that the potential dilutive common shares are issued and outstanding and the proceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the numbers of potential dilutive shares issued and the shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Unvested shares of restricted stock and performance units that do not contain non-forfeitable dividend rights, and warrants outstanding during the period that result in lower potential dilutive shares issued than shares purchased under the treasury stock method, are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share.

On May 17, 2018, the U.S. Treasury exercised its warrant to purchase 1,285,899 shares of the Corporation’s common stock on a cashless basis, resulting in the issuance of 730,571 shares of common stock.