Earning Per Common Share

12 Months Ended

Dec. 31, 2019

NOTE 25 – EARNINGS PER COMMON SHARE

The calculation of earnings per common share for the years ended December 31, 2019, 2018 and 2017 is as follows:

	Year Ended December 31,
	2019		2018		2017
	(In thousands, except per share data)
Net income	$	53,841	$	84,410	$	52,646
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A, B, and D)		(6,512)		(6,511)		(6,512)
Convertible preferred stock (Series C)		-		(5,513)		(7,350)
Income available to common shareholders	$	47,329	$	72,386	$	38,784
Effect of assumed conversion of the convertible preferred stock		-		5,513		7,350
Income available to common shareholders assuming conversion	$	47,329	$	77,899	$	46,134

Weighted average common shares and share equivalents:
Average common shares outstanding		51,335		45,400		43,939
Effect of dilutive securities:
Average potential common shares-options		384		142		19
Average potential common shares-assuming conversion of convertible preferred stock		-		5,807		7,138
Total weighted average common shares outstanding and equivalents		51,719		51,349		51,096
Earnings per common share - basic	$	0.92	$	1.59	$	0.88
Earnings per common share - diluted	$	0.92	$	1.52	$	0.88

During the last quarter of 2018, Oriental converted all of its 84,000 outstanding shares of Series C Preferred Stock into common stock. Each Series C Preferred Stock share was converted into 86.4225 shares of common stock. In computing diluted earnings per common share during the first nine months of 2018, the 84,000 shares of Series C Preferred Stock that remained outstanding, 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 years ended December 31, 2018 and 2017 on the convertible preferred stock were added back as income available to common shareholders.

For the years ended December 31, 2019, 2018 and 2017, weighted-average stock options with an anti-dilutive effect on earnings per share not included in the calculation amounted to 2,575, 432,532 and 932,306, respectively.