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Earnings Per Share
 3 Months Ended
Mar. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
11. Earnings per Share

Net income per common share reflects application of the two-class method. The Company's Series B shareholders were entitled to participate in any dividends paid on shares of the Company's common stock on a pro rata basis with the holders of the Company's common stock. Under the two-class method, during periods of net income, participating securities are allocated a proportional share of net income. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. Participating securities have the effect of diluting both basic and diluted earnings per share ("EPS") during periods of net income. The application of the two-class method will no longer be applicable to periods subsequent to the period during which the conversion of all of the outstanding Series B occurred. See Note 6 for additional information.

Basic EPS excludes dilution for potential common stock issuances and is computed by dividing basic net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted-average number of shares is increased by the dilutive effect of RSUs and common stock options using the treasury stock method.

The computation of basic and diluted EPS is as follows:

 

     Three Months Ended March 31,  
($ in thousands, except per share amounts)    2012     2011  

Net Income

    $ 5,450      $ 4,337   

Preferred stockholder dividends

      —          (704 ) 

Allocation of earnings to preferred stockholders

      (64 )      (654 ) 
  

 

 

    

 

 

  

Net Income Attributable to Common Stockholders

    $ 5,386      $ 2,979   
  

 

 

    

 

 

  

Shares:

     

Basic: Weighted-average number of shares outstanding

      7,468        6,242   

Plus: Incremental shares from assumed conversion of dilutive instruments

      498        671   
  

 

 

    

 

 

  

Diluted: Weighted-average number of shares outstanding

      7,966        6,913   
  

 

 

    

 

 

  

Earnings per share - basic

    $ 0.72      $ 0.48   

Earnings per share - diluted

    $ 0.68      $ 0.43   

For the three months ended March 31, 2012 there were no non-participating securities excluded from the above computation of weighted-average shares for diluted EPS. For the three months ended March 31, 2011, non-participating securities representing 10,001 shares of common stock were excluded from the above computations of weighted-average shares for diluted EPS as the securities' exercise prices are greater than the average market price of the common shares during the period.