Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share

Earnings Per Share

Note 11 — Earnings Per Share

Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted-average shares of common stock outstanding during each period, excluding non-vested shares.  The Company’s diluted earnings per share are based on the weighted-average shares of common stock outstanding during each period plus the maximum dilutive effect of common stock issuable upon exercise of stock options or vesting of restricted shares.  The weighted-average number of shares and equivalents are determined after giving retroactive effect to stock dividends and stock splits.

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars and shares in thousands)	2013		2012		2013		2012
Basic earnings per common share:
Net income available to common shareholders	$	11,512	$	9,063	$	34,693	$	24,122
Weighted-average basic common shares	21,894		14,920		18,518		14,484
Basic earnings per common share	$	0.53	$	0.61	$	1.87	$	1.67
Diluted earnings per share:
Net income available to common shareholders	$	11,512	$	9,063	$	34,693	$	24,122
Weighted-average basic common shares	21,894		14,920		18,518		14,484
Effect of dilutive securities	234		123		199		89
Weighted-average dilutive shares	22,128		15,043		18,717		14,573
Diluted earnings per common share	$	0.52	$	0.60	$	1.85	$	1.66

Since September 30, 2012, the Company closed two acquisitions.  In December 2012, the Company issued 1,802,137 shares of common stock for all of the outstanding shares of The Savannah Bancorp, Inc.  In July 2013, the Company issued 7,018,274 shares for all of the outstanding common shares of FFCH.  The result was an increase in the basic and diluted weighted-average shares outstanding of approximately 6.8 million shares and 3.5 million shares for the three and nine months ended September 30, 2013, respectively.

The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been antidilutive under the treasury stock method as follows:

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
(Dollars in thousands)	2013		2012	2013	2012
Number of shares	—		100,326	21,361	140,829
Range of exercise prices	$	—	$31.75 - $40.99	$41.45 - $41.45	$31.10 - $40.99