EARNINGS PER COMMON SHARE

Net income (loss) allocated to common shareholders is computed by subtracting income allocated to participating securities, participating securities dividends and preferred stock dividend from net income. Participating securities are instruments granted in share-based payment transactions that contain rights to receive nonforfeitable dividends or dividend equivalents, which includes the SARs to the extent they confer dividend equivalent rights, as described under “Stock Appreciation Rights” in Note 14. Basic earnings (loss) per common share (EPS) is computed by dividing net income allocated to common shareholders by the weighted average number of shares outstanding, including the minimum number of shares issuable under purchase contracts relating to the tangible equity units. Diluted EPS is computed by dividing net income (loss) allocated to common shareholders by the weighted average number of shares outstanding, adjusted for the dilutive effect of the restricted stock units, the potentially issuable shares in excess of the minimum under purchase contracts relating to the tangible equity units, outstanding stock options, and warrants to purchase common stock.

Computations for basic and diluted EPS are provided below.



	Three Months Ended									Nine Months Ended
	Common Stock			Class B Common Stock			Total			Common Stock			Class B Common Stock			Total
	($ in thousands, except per share data)
September 30, 2014:
Basic:
Net income	$	11,018		$	208		$	11,226		$	19,647		$	457		$	20,104
Less: income allocated to participating securities	(216		)	(4		)	(220		)	(280		)	(7		)	(287		)
Less: participating securities dividends	(136		)	(3		)	(139		)	(365		)	(8		)	(373		)
Less: preferred stock dividends	(893		)	(17		)	(910		)	(2,668		)	(62		)	(2,730		)
Net income allocated to common shareholders	$	9,773		$	184		$	9,957		$	16,334		$	380		$	16,714
Weighted average common shares outstanding	31,968,316			602,783			32,571,099			25,649,940			596,316			26,246,256
Basic earnings per common share	$	0.31		$	0.31		$	0.31		$	0.64		$	0.64		$	0.64
Diluted:
Net income allocated to common shareholders	$	9,773		$	184		$	9,957		$	16,334		$	380		$	16,714
Additional income allocation for class B dilutive shares	(29		)	29			—			(86		)	86			—
Adjusted net income allocated to common shareholders	$	9,744		$	213		$	9,957		$	16,248		$	466		$	16,714
Weighted average common shares outstanding for basic earnings per common share	31,968,316			602,783			32,571,099			25,649,940			596,316			26,246,256
Add: Dilutive effects of restricted stock units	17,604			—			17,604			33,865			—			33,865
Add: Dilutive effects of purchase contracts	—			—			—			—			—			—
Add: Dilutive effects of stock options	5,945			—			5,945			12,221			—			12,221
Add: Dilutive effects of warrants	—			95,088			95,088			—			137,521			137,521
Average shares and dilutive common shares	31,991,865			697,871			32,689,736			25,696,026			733,837			26,429,863
Diluted earnings per common share	$	0.30		$	0.31		$	0.30		$	0.63		$	0.64		$	0.63
September 30, 2013:
Basic:
Net income	$	(8,260	)	$	(274	)	$	(8,534	)	$	(3,039	)	$	(203	)	$	(3,242	)
Less: income allocated to participating securities	—			—			—			—			—			—
Less: preferred stock dividends	(916		)	(30		)	(946		)	(1,157		)	(77		)	(1,234		)
Net income allocated to common shareholders	$	(9,176	)	$	(304	)	$	(9,480	)	$	(4,196	)	$	(280	)	$	(4,476	)
Weighted average common shares outstanding	17,471,546			579,490			18,051,036			13,197,764			880,284			14,078,048
Basic earnings per common share	$	(0.53	)	$	(0.53	)	$	(0.53	)	$	(0.32	)	$	(0.32	)	$	(0.32	)
Diluted:
Net income allocated to common shareholders	$	(9,176	)	$	(304	)	$	(9,480	)	$	(4,196	)	$	(280	)	$	(4,476	)
Weighted average common shares outstanding for basic earnings per common share	17,471,546			579,490			18,051,036			13,197,764			880,284			14,078,048
Add: Dilutive effects of stock options	—			—			—			—			—			—
Add: Dilutive effects of warrants	—			—			—			—			—			—
Average shares and dilutive common shares	17,471,546			579,490			18,051,036			13,197,764			880,284			14,078,048
Diluted earnings per common share	$	(0.53	)	$	(0.53	)	$	(0.53	)	$	(0.32	)	$	(0.32	)	$	(0.32	)

For the three and nine months ended September 30, 2014, there were 673,054 and 598,054 stock options, respectively, for common stock that were not considered in computing diluted earnings per common share, because they were anti-dilutive. For the three and nine months ended September 30, 2013, there were 605,235 stock options and 754,574 warrants for common stock that were not considered in computing diluted earnings per common share, because they were anti-dilutive.