NOTE 17 — STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

Series A Preferred Stock Offering — In April 2008, the Company issued 200,000 shares of 8% Non-Cumulative Perpetual Convertible Preferred Stock, Series A (“Series A”), with a liquidation preference of $1,000 per share. The Company received $194.1 million of additional Tier 1 qualifying capital, after deducting stock issuance costs. On May 1, 2013, the Company exercised its mandatory conversion right related to all the outstanding shares of its Series A preferred stock. At the conversion date, the remaining 85,710 shares of outstanding Series A Preferred Stock were converted to 5,594,080 shares of common stock.

MetroCorp Warrant — The Company completed the acquisition of MetroCorp on January 17, 2014. Prior to the acquisition, MetroCorp had an outstanding warrant to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holder were converted into the right to acquire 230,282 shares of East West’s common stock until January 16, 2019. The warrant has not been exercised as of December 31, 2015.

Stock Repurchase Program — On January 23, 2013, the Company’s Board authorized a stock repurchase program to buy back up to $200.0 million of the Company’s common stock. During 2013, the Company completed the authorized repurchased program, repurchasing 8,026,807 shares at a weighted average price of $24.89 per share for a total cost of $200.0 million. On July 17, 2013, the Company’s Board authorized an additional stock repurchase program to buy back up to $100.0 million of the Company’s common stock. The Company has not repurchased any shares under this program. Although this program has no stated expiration date, the Company does not intend to repurchase any shares pursuant to this program absent further action of the Company’s Board.

Quarterly Dividends — The Company paid quarterly dividends on its common stock of $0.20 per share for each quarter of 2015. In comparison, the Company paid quarterly dividends on its common stock of $0.18 and $0.15 per share for each quarter of 2014 and 2013, respectively. Total dividends amounting to $116.2 million, $104.0 million and $83.3 million were paid to the Company’s common stockholders during the years ended December 31, 2015, 2014 and 2013, respectively.

The Company’s Board declared and paid quarterly preferred stock cash dividends of $20.00 per share on its Series A preferred stock in 2013. Cash dividends totaling $3.4 million were paid to the Company’s Series A preferred stock stockholders during the year ended December 31, 2013. The Series A preferred stock were converted into common stock on May 1, 2013.

EPS — EPS is calculated using the two-class method. Certain of the Company’s instruments containing rights to nonforfeitable dividends granted in stock-based payment transactions are considered participating securities prior to vesting and, therefore, have been included in the earnings allocations to compute basic and diluted EPS.

The following table presents EPS calculations for the years ended December 31, 2015, 2014 and 2013:




	Year Ended December 31,
($ in thousands, except per share data, shares in thousands)	2015		2014		2013
Basic
Net income ⁽¹⁾	$	384,677	$	345,878	$	293,324
Less: Preferred stock dividends	—		—		3,428
Earnings allocated to participating securities	3		506		1,682
Net income allocated to common stockholders ⁽¹⁾	$	384,674	$	345,372	$	288,214

Basic weighted-average common shares outstanding	143,818		142,952		137,342
Basic EPS ⁽¹⁾	$	2.67	$	2.42	$	2.10

Diluted
Net income allocated to common stockholders ⁽¹⁾	$	384,674	$	345,372	$	288,214
Add: Convertible preferred stock dividends	—		—		3,428
Net income allocated to diluted common stockholders ⁽¹⁾	$	384,674	$	345,372	$	291,642

Basic weighted-average common shares outstanding	143,818		142,952		137,342
Diluted potential common shares ⁽²⁾	694		611		2,232
Diluted weighted-average common shares outstanding	144,512		143,563		139,574
Diluted EPS ⁽¹⁾	$	2.66	$	2.41	$	2.09


(1)	Prior periods were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company’s investments in qualified affordable housing projects ASU 2014-01. Please see Note 9 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements for additional information.


(2)	Includes dilutive shares from stock options, and RSUs for the years ended December 31, 2015, 2014 and 2013. Also includes dilutive shares from warrants for the years ended December 31, 2015 and 2014, and dilutive shares from preferred stock for the year ended December 31, 2013.

For the year ended December 31, 2015, approximately 16 thousand weighted average anti-dilutive shares of RSUs, were excluded from the diluted EPS computation. For the years ended December 31, 2014 and 2013, approximately 27 thousand and 187 thousand weighted average anti-dilutive shares, respectively, comprised of stock options and RSUs, were excluded from the diluted EPS computation.