STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2011

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 12 - STOCKHOLDERS' EQUITY

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. The holders of the Series A preferred stock have the right at any time to convert each share of Series A preferred shares into 64.9942 shares of the Company's common stock, plus cash in lieu of fractional shares. This represents an initial conversion price of approximately $15.39 per share of common stock or a 22.5% conversion premium based on the closing price of the Company's common stock on April 23, 2008 of $12.56 per share. On or after May 1, 2013, the Company will have the right, under certain circumstances, to cause the Series A preferred shares to be converted into shares of the Company's common stock. Dividends on the Series A preferred shares, if declared, will accrue and be payable quarterly in arrears at a rate per annum equal to 8% on the liquidation preference of $1,000 per share. The proceeds from this offering were used to augment the Company's liquidity and capital positions and reduce its borrowings. As of September 30, 2011, 85,710 shares were outstanding.

Series B Preferred Stock Offering-On December 5, 2008, the Company issued 306,546 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B (“Series B”), with a liquidation preference of $1,000 per share. The Company received $306.5 million of additional Tier 1 qualifying capital from the U.S. Treasury by participating in the U.S. Treasury's Capital Purchase Program (“TCPP”). On December 29, 2010, in accordance with approvals received from the U.S. Treasury and the Federal Reserve Board, the Company repurchased all shares of the Series B preferred stock and the related accrued and unpaid dividends by using $308.4 million of available cash, without raising any capital or debt. As a result, no shares of the Series B preferred stock remain outstanding.

Series C Private Placement-On November 5, 2009, the Company entered into investment agreements with various investors, pursuant to which the investors purchased an aggregate of $500.0 million of our common stock and newly-issued shares of our Mandatorily Convertible Non-Voting Perpetual Preferred Stock, Series C (“Series C”), with a liquidation preference of $1,000 per share, in a private placement transaction which closed on November 6, 2009. In the private placement, we issued certain qualified institutional buyers and accredited investors, including some existing institutional stockholders, an aggregate of 335,047 shares of our Series C preferred stock and an aggregate of 18,247,012 shares of common stock. On March 25, 2010, at a special meeting of the stockholders, our stockholders voted to approve the issuance of 37,103,734 shares of our common stock upon conversion of the 335,047 shares of the Series C preferred stock. Subsequently, on March 30, 2010, each share of the Series C preferred stock was automatically converted into 110.74197 shares of common stock at a per common share conversion price of $9.03, as adjusted in accordance with the terms of the Series C preferred stock. As a result, no shares of the Series C preferred stock remain outstanding.

Warrants – During 2008, in conjunction with the Series B preferred stock offering, the Company issued to the U.S. Treasury warrants with an initial price of $15.15 per share of common stock for which the warrants may be exercised, with an allocated fair value of $25.2 million. The warrants could be exercised at any time on or before December 5, 2018. On January 26, 2011 the Company repurchased the 1,517,555 warrants outstanding for $14.5 million.

Stock Repurchase Program-During 2007, the Company's Board of Directors authorized a stock repurchase program to buy back up to $80.0 million of the Company's common stock. The Company did not repurchase any shares during the nine months ended September 30, 2011 and September 30, 2010.

Quarterly Dividends-On July 20, 2011, the Company's Board of Directors declared third quarter preferred stock cash dividends of $20.00 per share on its Series A preferred stock payable on or about August 1, 2011 to shareholders of record on July 15, 2011. Total cash dividends paid in conjunction with the Company's Series A preferred stock amounted to $1.7 million and $5.1 million during the three and nine months ended September 30, 2011.

On July 20, 2011, the Company's Board of Directors also declared quarterly common stock cash dividends of $0.05 per share payable on or about August 24, 2011 to shareholders of record on August 10, 2011. Cash dividends totaling $7.5 million and $16.4 million were paid to the Company's common shareholders during the three and nine months ended September 30, 2011.

Earnings Per Share (“EPS”)-The number of shares outstanding at September 30, 2011 was 148,961,927. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of shares outstanding during the period. Diluted EPS is calculated on the basis of the weighted average number of shares outstanding during the period plus restricted stock and shares issuable upon the assumed exercise of outstanding convertible preferred stock, stock options, and stock warrants, unless they have an antidilutive effect.

The following table sets forth earnings per share calculations for the three and nine months ended September 30, 2011 and 2010:

	Three Months Ended September 30,
	2011							2010
	Net Income							Net Income
	Available to			Number		Per		Available to			Number		Per
	Common			of		Share		Common			of		Share
	Stockholders			Shares		Amounts		Stockholders			Shares		Amounts
	(In thousands, except per share data)
Net income	$	62,432						$	46,951
Less:
Preferred stock dividends and amortization of preferred stock discount		(1,714	)						(6,732	)
Basic EPS – income available to common stockholders	$	60,718			147,162	$	0.41	$	40,219			146,454	$	0.27
Effect of dilutive securities:
Stock options		-			37				-			126
Restricted stock		34			683				4			430
Convertible preferred stock		1,714			5,571				-			-
Stock warrants		-			-				-			103
Diluted EPS – income available to common stockholders	$	62,466			153,453	$	0.41	$	40,223			147,113	$	0.27

	Nine Months Ended September 30,
	2011							2010
	Net Income							Net Income
	Available to			Number		Per		Available to			Number		Per
	Common			of		Share		Common			of		Share
	Stockholders			Shares		Amounts		Stockholders			Shares		Amounts
	(In thousands, except per share data)
Net income	$	179,028						$	108,215
Less:
Preferred stock dividends and amortization of preferred stock discount		(5,143	)						(19,017	)
Basic EPS – income available to common stockholders	$	173,885			147,013	$	1.18	$	89,198			134,396	$	0.66
Effect of dilutive securities:
Stock options		-			74				-			150
Restricted stock		75			681				10			344
Convertible preferred stock		5,143			5,571				-			11,947
Stock warrants		-			33				-			156
Diluted EPS – income available to common stockholders	$	179,103			153,372	$	1.17	$	89,208			146,993	$	0.61

The following outstanding convertible preferred stock, stock options, and restricted stock for the three and nine months ended September 30, 2011 and 2010, respectively, were excluded from the computation of diluted EPS because including them would have had an antidilutive effect.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
	(In thousands)
Convertible preferred stock		-		5,573		-		5,573
Stock options		936		1,087		851		1,083
Restricted stock		519		32		342		271