Earnings Per Common Share

9 Months Ended

Sep. 30, 2018

NOTE 18 – EARNINGS PER COMMON SHARE

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

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2018		2017		2018		2017
	(In thousands, except per share data)
Net income	$	23,100	$	3,319	$	59,666	$	35,573
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A, B, and D)		(1,628)		(1,627)		(4,883)		(4,883)
Convertible preferred stock (Series C)		(1,838)		(1,838)		(5,513)		(5,513)
Income available to common shareholders	$	19,634	$	(146)	$	49,270	$	25,177
Effect of assumed conversion of the convertible preferred stock		1,838		1,838		5,513		5,513
Income available to common shareholders assuming conversion	$	21,472	$	1,692	$	54,783	$	30,690

Weighted average common shares and share equivalents:
Average common shares outstanding		43,996		43,947		43,975		43,937
Effect of dilutive securities:
Average potential common shares-options		209		17		110		20
Average potential common shares-assuming conversion of convertible preferred stock		7,259		7,138		7,259		7,138
Total weighted average common shares outstanding and equivalents		51,464		51,102		51,344		51,095
Earnings per common share - basic	$	0.45	$	-	$	1.12	$	0.57
Earnings per common share - diluted	$	0.42	$	-	$	1.07	$	0.56

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

For the quarters ended September 30, 2018 and 2017, weighted-average stock options with an anti-dilutive effect on earnings per share not included in the calculation amounted to 307,925 and 922,601, respectively. For the nine-month period ended September 30, 2018 and 2017, weighted-average stock options with an anti-dilutive effect on earnings per share not included in the calculation amounted to 435,950 and 935,740, respectively.