Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share

Note 18. Earnings Per Share

Hancock calculates earnings per share using the two-class method. The two-class method allocates net income to each class of common stock and participating security according to common dividends declared and participation rights in undistributed earnings. Participating securities consist of unvested stock-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents.

A summary of the information used in the computation of earnings per common share follows (in thousands, except per share data):

	Years Ended December 31,
	2012		2011		2010
Numerator:
Net income to common shareholders	$	151,742	$	76,759	$	52,206
Net income allocated to participating
securities - basic and diluted		1,557		866		320
Net income allocated to common
shareholders - basic and diluted	$	150,185	$	75,893	$	51,886
Denominator:
Weighted-average common shares - basic		84,767		65,590		36,876
Dilutive potential common shares		821		480		178
Weighted average common shares - diluted		85,588		66,070		37,054
Earnings per common share:
Basic	$	1.77	$	1.16	$	1.41
Diluted	$	1.75	$	1.15	$	1.40

Potential common shares consist of employee and director stock options. These potential common shares do not enter into the calculation of diluted earnings per share if the impact would be anti-dilutive, i.e., increase earnings per share or reduce a loss per share. Weighted-average anti-dilutive potential common shares totalled 449,377 for the twelve months ended December 31, 2012 and 680,611 for the twelve months ended December 31, 2011. There were no anti-dilutive potential common shares in 2010.