Earnings Per Common Share

6 Months Ended

Jun. 30, 2018

NOTE 18 – EARNINGS PER COMMON SHARE

The calculation of earnings per common share for the quarters and six-month periods ended June 30, 2018 and 2017 is as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2018		2017		2018		2017
	(In thousands, except per share data)
Net income	$	19,649	$	17,104	$	36,566	$	32,254
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A, B, and D)		(1,628)		(1,629)		(3,255)		(3,256)
Convertible preferred stock (Series C)		(1,837)		(1,837)		(3,675)		(3,675)
Income available to common shareholders	$	16,184	$	13,638	$	29,636	$	25,323
Effect of assumed conversion of the convertible preferred stock		1,837		1,837		3,675		3,675
Income available to common shareholders assuming conversion	$	18,021	$	15,475	$	33,311	$	28,998

Weighted average common shares and share equivalents:
Average common shares outstanding		43,975		43,947		43,965		43,931
Effect of dilutive securities:
Average potential common shares-options		113		15		54		24
Average potential common shares-assuming conversion of convertible preferred stock		7,138		7,138		7,138		7,138
Total weighted average common shares outstanding and equivalents		51,226		51,100		51,157		51,093
Earnings per common share - basic	$	0.36	$	0.30	$	0.67	$	0.58
Earnings per common share - diluted	$	0.35	$	0.30	$	0.65	$	0.57

In computing diluted earnings per common share, the 84,000 shares of convertible preferred stock, which remain outstanding at June 30, 2018, 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 per common share, the dividends declared during the quarters and six-month periods ended June 30, 2018 and 2017 on the convertible preferred stock were added back as income available to common shareholders.

For the quarters ended June 30, 2018 and 2017, weighted-average stock options with an anti-dilutive effect on earnings per share not included in the calculation amounted to 433,493 and 967,041, respectively. For the six-month period ended June 30, 2018 and 2017, weighted-average stock options with an anti-dilutive effect on earnings per share not included in the calculation amounted to 442,221 and 890,472, respectively.