Earnings Per Share

9 Months Ended

Sep. 30, 2014

Note 13 — Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income attributable to Arbor Realty Trust, Inc. by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period using the treasury stock method. The Company’s common stock equivalents include the weighted average dilutive effect of warrants for the period of time that they were outstanding.

The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computations for the three months ended September 30, 2014 and 2013.

	Three Months Ended				Three Months Ended
	September 30, 2014				September 30, 2013
	Basic		Diluted		Basic		Diluted
Net income attributable to Arbor Realty Trust, Inc. common stockholders (1)	$	63,402,121	$	63,402,121	$	3,664,679	$	3,664,679

Weighted average number of common shares outstanding	50,477,308		50,477,308		43,397,555		43,397,555
Dilutive effect of warrants (2)	—		—		—		434,716
Weighted average number of common shares outstanding	50,477,308		50,477,308		43,397,555		43,832,271

Net income attributable to Arbor Realty Trust, Inc. per common share (1)	$	1.26	$	1.26	$	0.08	$	0.08

The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computations for the nine months ended September 30, 2014 and 2013.

	Nine Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2013
	Basic		Diluted		Basic		Diluted
Net income attributable to Arbor Realty Trust, Inc. common stockholders (1)	$	80,742,939	$	80,742,939	$	13,300,784	$	13,300,784

Weighted average number of common shares outstanding	50,031,205		50,031,205		40,129,718		40,129,718
Dilutive effect of warrants (2)	—		300,418		—		446,915
Weighted average number of common shares outstanding	50,031,205		50,331,623		40,129,718		40,576,633

Net income attributable to Arbor Realty Trust, Inc. per common share (1)	$	1.61	$	1.60	$	0.33	$	0.33

(1)

Net of noncontrolling interest and preferred stock dividends.

(2)

On July 1, 2014, all of the warrants were acquired and canceled by the Company. See Note 12 — “Equity” for further details.

- Definition

The entire disclosure for earnings per share.

+ References+ Details