Earnings Per Share

6 Months Ended

Jun. 30, 2015

Note 13 — Earnings Per Share

Basic 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. Our common stock equivalents include the weighted average dilutive effect of performance-based restricted stock units granted to our chief executive officer in the first quarter of 2015 as well as the weighted average dilutive effect of warrants for the period of time they were outstanding during 2014.

The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computations for the periods presented:

	Three Months Ended				Three Months Ended
	June 30, 2015				June 30, 2014
	Basic		Diluted		Basic		Diluted
Net income attributable to common stockholders (1)	$	10,498,640	$	10,498,640	$	11,466,057	$	11,466,057


Weighted average number of common shares outstanding	50,955,648		50,955,648		50,267,462		50,267,462
Dilutive effect of restricted stock units (2)	—		—		—		—
Dilutive effect of warrants (3)	—		—		—		434,280

Weighted average number of common shares outstanding	50,955,648		50,955,648		50,267,462		50,701,742


Net income per common share (1)	$	0.21	$	0.21	$	0.23	$	0.23

	Six Months Ended				Six Months Ended
	June 30, 2015				June 30, 2014
	Basic		Diluted		Basic		Diluted
Net income attributable to common stockholders (1)	$	25,509,109	$	25,509,109	$	17,340,818	$	17,340,818


Weighted average number of common shares outstanding	50,751,247		50,751,247		49,804,457		49,804,457
Dilutive effect of restricted stock units (2)	—		143,284		—		—
Dilutive effect of warrants (3)	—		—		—		425,442

Weighted average number of common shares outstanding	50,751,247		50,894,531		49,804,457		50,229,899


Net income per common share (1)	$	0.50	$	0.50	$	0.35	$	0.35

(1)

Net of preferred stock dividends.

(2)

Mr. Kaufman was granted restricted stock units which vest at the end of a four-year performance period based upon our achievement of total shareholder return objectives. See Note 12 — “Equity” for further details.

(3)

On July 1, 2014, we acquired and canceled all of our warrants. See Note 12 — “Equity” for further details.