Note 7 - Earnings per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Text Block]

Note 7 - Earnings Per Share

We compute earnings per share using the two-class method.  Under the two-class method, earnings per common share are computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period.

The following table summarizes the earnings and the weighted average number of common shares used in the calculation of basic and diluted earnings per share.

	Year Ended December 31,
	2012		2011		2010
	(dollars in thousands, except share and per share amounts)
Basic:
Weighted average common shares outstanding		13,852,709		13,774,628		13,671,053
Net income	$	57,957	$	64,072	$	52,695
Dividends to preferred stockholders		8,671		8,671		8,673
Net income available to common stockholders	$	49,286	$	55,401	$	44,022
Earnings per common share, basic	$	3.56	$	4.02	$	3.22
Diluted:
Weighted average common shares outstanding		13,852,709		13,774,628		13,671,053
Dilutive effect of stock options		8,019		9,934		3,237
Dilutive effect of restricted stock		5,526		6,009		2,186
Dilutive effect of contingent issuable stock		109,233		–		–
Convertible preferred stock		2,623,329		2,623,452		–
Assumed average common shares outstanding		16,598,816		16,414,023		13,676,476
Net income available to common stockholders	$	49,286	$	55,401	$	44,022
Add dilutive preferred stock dividends for effect of assumed conversion of preferred stock		8,671		8,671		–
Net income for diluted earnings per common share	$	57,957	$	64,072	$	44,022
Earnings per common share, diluted	$	3.49	$	3.90	$	3.22

Excluded in the above table are 1,068,302; 1,420,620; and 235,620 shares associated with stock options for 2012, 2011, and 2010, respectively, due to their antidilutive impact.  Also excluded in 2010 are 2,623,861 potential common shares issuable upon the conversion of preferred stock due to their antidilutive impact.