Earnings Per Common Share

9 Months Ended

Sep. 30, 2016

NOTE 17 – EARNINGS (LOSS) PER COMMON SHARE

The calculation of earnings (loss) per common share for the quarters and nine-month periods ended September 30, 2016 and 2015 is as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2016		2015		2016		2015
	(In thousands, except per share data)				(In thousands, except per share data)
Net income (loss)	$	15,120	$	4,569	$	43,630	$	(1,528)
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A, B, and D)		(1,627)		(1,627)		(4,883)		(4,884)
Convertible preferred stock (Series C)		(1,838)		(1,838)		(5,513)		(5,512)
Income (loss) available to common shareholders	$	11,655	$	1,104	$	33,234	$	(11,924)
Effect of assumed conversion of the convertible preferred stock		1,838		1,838		5,513		5,512
Income (loss) available to common shareholders assuming conversion	$	13,493	$	2,942	$	38,747	$	(6,412)

Weighted average common shares and share equivalents:
Average common shares outstanding		43,926		43,929		43,913		44,353
Effect of dilutive securities:
Average potential common shares-options		47		46		40		85
Average potential common shares-assuming conversion of convertible preferred stock		7,138		7,171		7,138		7,171
Total weighted average common shares outstanding and equivalents		51,111		51,146		51,091		51,609
Earnings (loss) per common share - basic	$	0.27	$	0.03	$	0.76	$	(0.27)
Earnings (loss) per common share - diluted	$	0.26	$	0.03	$	0.76	$	(0.27)

In computing diluted earnings (loss) per common share, the 84,000 shares of convertible preferred stock, which remain outstanding at September 30, 2016, with a conversion rate, subject to certain conditions, of 86.4225 shares of common stock per share, were included as average potential common shares from the date they were issued and outstanding. Moreover, in computing diluted earnings (loss) per common share, the dividends declared during the quarters ended September 30, 2016 and 2015 on the convertible preferred stock were added back as income available to common shareholders.

For the quarters ended September 30, 2016 and 2015, weighted-average stock options with an anti-dilutive effect on earnings (loss) per share not included in the calculation amounted to 927,069 and 973,200, respectively.

For the nine-month periods ended September 30, 2016 and 2015, weighted-average stock options with an anti-dilutive effect on earnings (loss) per share not included in the calculation amounted to 957,670 and 648,563, respectively.