EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2016

NOTE 20 – EARNINGS PER COMMON SHARE

The calculation of earnings per common share for the years ended December 31, 2016, 2015, and 2014 are as follows:

		Year Ended December 31,

		2016		2015		2014
(In thousands, except per share information)
Net income		$	93,229	$	21,297	$	392,287
Less: Preferred stock dividends			(223)		-		-
Favorable impact from issuing common stock in exchange for
Series A through E preferred stock (1)			-		-		1,659
Net income attributable to common stockholders		$	93,006	$	21,297	$	393,946
Weighted-Average Shares:
Average common shares outstanding			212,818		211,457		208,752
Average potential dilutive common shares			2,976		1,514		1,788
Average common shares outstanding - assuming dilution			215,794		212,971		210,540

Earnings per common share:

Basic		$	0.44	$	0.10	$	1.89

Diluted		$	0.43	$	0.10	$	1.87

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(1)	Excess of carrying amount of the Series A through E preferred stock exchanged over the fair value of new common shares issued in 2014.

Earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares issued and outstanding. Net income attributable to common stockholders represents net income adjusted for any preferred stock dividends, including any dividends declared and any cumulative dividends related to the current dividend period that have not been declared as of the end of the period. For 2014, net income attributable to common stockholders also includes the one-time effect to retained earnings of the issuance of common stock in exchange for Series A through E preferred stock. These transactions are discussed in Note 22 – Stockholders’ Equity, to the consolidated financial statements. Basic weighted-average common shares outstanding exclude unvested shares of restricted stock.

Potential common shares consist of common stock issuable under the assumed exercise of stock options, unvested shares of restricted stock, and outstanding warrants using the treasury stock method. This method assumes that the potential common shares are issued and the proceeds from the exercise, in addition to the amount of compensation cost attributable to future services, are used to purchase common stock at the exercise date. The difference between the number of potential shares issued and the shares purchased are added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Stock options, unvested shares of restricted stock, and outstanding warrants that result in lower potential shares issued than shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share. Stock options not included in the computation of outstanding shares because they were antidilutive amounted to 34,989; 69,848, and 82,575 as of December 31, 2016, 2015, and 2014, respectively.