EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2017

13. EARNINGS PER SHARE

The Company’s net income (loss) and weighted average shares outstanding for the three and nine months ended September 30, 2017 and 2016 consist of the following:



($ in thousands except share amounts)	For the Three Months Ended September 30, 2017		For the Three Months Ended September 30, 2016		For the Nine Months Ended September 30, 2017		For the Nine Months Ended September 30, 2016

Basic Net income (loss) available for Class A common shareholders	$	24,039	$	27,608	$	48,172	$	24,871
Diluted Net income (loss) available for Class A common shareholders	$	24,039	$	27,608	$	65,275	$	24,871
Weighted average shares outstanding
Basic	85,135,685		62,148,362		79,416,957		60,976,046
Diluted	85,476,266		63,347,690		109,857,679		61,875,010

The calculation of basic and diluted net income (loss) per share amounts for the three and nine months ended September 30, 2017 and 2016 are described and presented below.

Basic Net Income (Loss) per Share

Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2017 and 2016, respectively.

Denominator: utilizes the weighted average shares of Class A common stock for the three and nine months ended September 30, 2017 and 2016, respectively.

Diluted Net Income (Loss) per Share

Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2017 and 2016, respectively, for the basic net income (loss) per share calculation described above, adding net income (loss) amounts attributable to the noncontrolling interest in the Operating Partnership using the as-if converted method for the Class B common shareholders while adjusting for additional corporate income tax expense (benefit) for the described net income (loss) add-back.

Denominator: utilizes the weighted average number of shares of Class A common stock for the three and nine months ended September 30, 2017 and 2016, respectively, for the basic net income (loss) per share calculation described above adding the dilutive effect of shares issuable relating to Operating Partnership exchangeable interests and the incremental shares of unvested Class A restricted stock using the treasury method.



(In thousands except share amounts)	For the Three Months Ended September 30, 2017		For the Three Months Ended September 30, 2016		For the Nine Months Ended September 30, 2017		For the Nine Months Ended September 30, 2016

Basic Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	24,039	$	27,608	$	48,172	$	24,871
Denominator:
Weighted average number of shares of Class A common stock outstanding	85,135,685		62,148,362		79,416,957		60,976,046
Basic net income (loss) per share of Class A common stock	$	0.28	$	0.44	$	0.61	$	0.41

Diluted Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	24,039	$	27,608	$	48,172	$	24,871
Add (deduct) - dilutive effect of:
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss)	—		—		15,210		—
Additional corporate tax (expense) benefit	—		—		1,893		—
Diluted net income (loss) attributable to Class A common shareholders	$	24,039	$	27,608	$	65,275	$	24,871
Denominator:
Basic weighted average number of shares of Class A common stock outstanding	85,135,685		62,148,362		79,416,957		60,976,046
Add - dilutive effect of:
Shares issuable relating to converted Class B common shareholders	—		—		30,211,137		—
Incremental shares of unvested Class A restricted stock	340,581		1,199,328		229,585		898,964
Diluted weighted average number of shares of Class A common stock outstanding	85,476,266		63,347,690		109,857,679		61,875,010
Diluted net income (loss) per share of Class A common stock	$	0.28	$	0.44	$	0.59	$	0.40

For the three months ended September 30, 2017 and the three and nine months ended September 30, 2016, shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS, as the inclusion of such potential common shares in the calculation would be anti-dilutive.

The shares of Class B common stock do not share in the earnings of Ladder Capital Corp and are, therefore, not participating securities. Accordingly, basic and diluted net income (loss) per share of Class B common stock has not been presented, although the assumed conversion of Class B common stock has been included in the presented diluted net income (loss) per share of Class A common stock.