Shareholders' Equity

3 Months Ended

Mar. 31, 2014

Shareholders' Equity

Shareholders' Equity

Note 7. Shareholders’ Equity

Earnings Per Common Share

Basic earnings per common share (“EPS”) excludes dilution and is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period.  Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of common stock that would then share in the earnings of the Company. The following table provides the basic and diluted EPS computations for the periods indicated below:

	For the Three Months Ended March 31,
(Dollars in Thousands, Except per Share Data)	2014		2013
Numerator:
Net income available to common shareholders	$	13,113	$	11,589
Denominator for basic earnings per share:
Weighted-average shares	78,115,779		71,295,673
Effect of dilutive securities:
Stock option dilution	380,327		136,168
Denominator for diluted earnings per share:
Adjusted weighted-average shares and assumed conversions	78,496,106		71,431,841
Basic earnings per common share	$	0.17	$	0.16
Diluted earnings per common share	$	0.17	$	0.16

For the three months ended March 31, 2014 and March 31, 2013, stock options awards totaling 269,000 and 986,000, respectively, were excluded from dilutive earnings per common share calculation because the shares were deemed to be anti-dilutive.

In March 2013, the Board of Directors of Wilshire Bancorp authorized the repurchase of up to 5% of the Company’s outstanding shares of common stock.  During the first quarter of 2014, the Company did not repurchase any shares. Since the program’s inception, 651,412 shares of common stock were repurchased for a total price of $4.3 million.  The program expired on March 28, 2014.

During the first quarter of 2014 the Company’s Board of Directors approved equity awards to certain employees in the form of stock options and restricted stock.  A total of 42,200 stock options were granted on March 31, 2014 with an exercise price of $11.10 per share.  The vesting period for the stock option awards began on the grant date, at which time 25% was immediately vested and the remainder will be vested in 25% annual increments over a period of three years.  The stock option awards expire five years from the date of the grant, or on March 31, 2019. The fair value of the stock options awards at March 31, 2014 was $3.17 per share. The Company expects to incur approximately $115,000 in compensation expenses related to these stock option awards.

A total of 71,950 shares of restricted stock were also granted on March 31, 2014.  The vesting period for the restricted stock grants began on the grant date, at which time 25% was immediately vested and the remainder will be vested in 25% annual increments over a period of three years.  There is no expiration on the restricted stock grants.  The restricted stock will be eligible to receive any dividend that the Company may pay in the future to its common shareholders. The fair value of the restricted stock awards at March 31, 2014 was $11.10 per share. The Company expects to incur approximately $799,000 in compensation expenses related to these restricted stock awards.