EARNINGS PER COMMON SHARE

Net income allocated to common stockholders is computed by subtracting income allocated to participating securities, participating securities dividends and preferred stock dividends 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 per common share (EPS) is computed by dividing net income allocated to common stockholders 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 allocated to common stockholders 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									Six Months Ended
	Common Stock			Class B Common Stock			Total			Common Stock			Class B Common Stock			Total
	($ in thousands, except per share data)
June 30, 2015
Basic:
Net income	$	15,923		$	1		$	15,924		$	28,482		$	16		$	28,498
Less: income allocated to participating securities	(308		)	—			(308		)	(580		)	—			(580		)
Less: participating securities dividends	(173		)	—			(173		)	(346		)	—			(346		)
Less: preferred stock dividends	(2,843		)	—			(2,843		)	(3,751		)	(2		)	(3,753		)
Net income allocated to common stockholders	$	12,599		$	1		$	12,600		$	23,805		$	14		$	23,819
Weighted average common shares outstanding	38,519,816			11			38,519,827			38,127,368			20,998			38,148,366
Basic earnings per common share	$	0.33		$	0.33		$	0.33		$	0.62		$	0.62		$	0.62
Diluted:
Net income allocated to common stockholders	$	12,599		$	1		$	12,600		$	23,805		$	14		$	23,819
Additional income allocation for class B dilutive shares	(162		)	162			—			(250		)	250			—
Adjusted net income allocated to common stockholders	$	12,437		$	163		$	12,600		$	23,555		$	264		$	23,819
Weighted average common shares outstanding for basic earnings per common share	38,519,816			11			38,519,827			38,127,368			20,998			38,148,366
Add: Dilutive effects of restricted stock units	138,196			—			138,196			142,381			—			142,381
Add: Dilutive effects of purchase contracts	—			—			—			—			—			—
Add: Dilutive effects of stock options	42,533			—			42,533			12,179			—			12,179
Add: Dilutive effects of warrants	—			494,622			494,622			—			404,369			404,369
Average shares and dilutive common shares	38,700,545			494,633			39,195,178			38,281,928			425,367			38,707,295
Diluted earnings per common share	$	0.32		$	0.33		$	0.32		$	0.62		$	0.62		$	0.62
June 30, 2014
Basic:
Net income	$	7,912		$	187		$	8,099		$	8,620		$	228		$	8,848
Less: income allocated to participating securities	(156		)	(4		)	(160		)	(66		)	(2		)	(68		)
Less: participating securities dividends	—			—			—			—			—			—
Less: preferred stock dividends	(889		)	(21		)	(910		)	(1,773		)	(47		)	(1,820		)
Net income allocated to common stockholders	$	6,867		$	162		$	7,029		$	6,781		$	179		$	6,960
Weighted average common shares outstanding	25,239,390			596,018			25,835,408			22,439,267			593,030			23,032,297
Basic earnings per common share	$	0.27		$	0.27		$	0.27		$	0.30		$	0.30		$	0.30
Diluted:
Net income allocated to common stockholders	$	6,867		$	162		$	7,029		$	6,781		$	179		$	6,960
Weighted average common shares outstanding for basic earnings per common share	25,239,390			596,018			25,835,408			22,439,267			593,030			23,032,297
Add: Dilutive effects of restricted stock units	38,741			—			38,741			22,110			—			22,110
Add: Dilutive effects of purchase contracts	55,370			—			55,370			27,838			—			27,838
Add: Dilutive effects of stock options	568			—			568			13,268			—			13,268
Add: Dilutive effects of warrants	—			58,478			58,478			—			158,205			158,205
Average shares and dilutive common shares	25,334,069			654,496			25,988,565			22,502,483			751,235			23,253,718
Diluted earnings per common share	$	0.27		$	0.25		$	0.27		$	0.30		$	0.24		$	0.30

For the three and six months ended June 30, 2015, there were 324,500 and 627,514 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 six months ended June 30, 2014, there were 683,054 and 558,054 stock options, respectively, for common stock that were not considered in computing diluted earnings per common share, because they were anti-dilutive.