The following table presents a reconciliation of basic and diluted earnings / (loss) per common share for the periods indicated.

EARNINGS / (LOSS) PER COMMON SHARE

(Dollars in Thousands, except share and per share information)


	Year Ended December 31,
	2012			2011			2010
Net income / (loss) attributable to IFMI	$	(968	)	$	(9,388	)	$	7,595
Add / (deduct): Income / (loss) attributable to the non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares (1)		(857	)		(5,571	)		3,620
Add / (deduct): Adjustment (2)		307			914			260

Net income (loss) on a fully converted basis	$	(1,518	)	$	(14,045	)	$	11,475

Weighted average common shares outstanding — Basic		10,732,723			10,631,935			10,404,017
Unrestricted Operating LLC membership units exchangeable into IFMI shares (1)		5,252,198			5,269,323			5,283,556

Weighted average common shares outstanding — Diluted (3)		15,984,921			15,901,258			15,687,573

Net income / (loss) per common share-Basic	$	(0.09	)	$	(0.88	)	$	0.73

Net income / (loss) per common share-Diluted	$	(0.09	)	$	(0.88	)	$	0.73

(1)

The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest for the years ended December 31, 2012, 2011, and 2010) may be redeemed and exchanged into shares of the Company on a one-to-one basis. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income (loss) per common share when the effect is dilutive using the if-converted method.

(2)

An adjustment is included for the following: (i) if the Operating LLC membership units had been converted at the beginning of the period, the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable; and (ii) to adjust the non-controlling interest amount to be consistent with the weighted average share calculation.

(3)

Due to the net loss for the years ended December 31, 2012 and 2011, the weighted average shares calculation excluded (i) restricted Operating membership units of 5,814 and 1,807 for the years ended December 31, 2012 and 2011, respectively; (ii) restricted units of IFMI Common Stock of 12,955 and 0 for the years ended December 31, 2012 and 2011, respectively; and (iii) restricted shares of IFMI Common Stock of 125,632 and 15,617 for the years ended December 31, 2012 and 2011, respectively.