Note 4 - Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings per share: [Abstract]

Earnings Per Share [Text Block]

4. Earnings Per Share     

A company that has participating securities (for example, holders of unvested restricted stock that has nonforfeitable dividend rights) is required to utilize the two-class method to calculate earnings per share (“EPS”) unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings/(loss) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings/(loss) for the reporting period are allocated between common shareholders and other security holders based on their respective rights to receive distributed earnings (i.e., dividends) and undistributed earnings (i.e., net income/(loss)). Currently, we have one class of security and we have participating security holders consisting of shareholders of unvested restricted stock. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potential dilutive stock options outstanding. The following table shows basic and diluted EPS calculations:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(Dollars in thousands, except per share amounts)
Numerator
Net income	$	21,542		$	224,909		$	33,046		$	247,425
Less: distributed earnings allocated to participating securities		(49	)		-			(101	)		-
Less: undistributed earnings allocated to participating securities		(37	)		(2,069	)		(39	)		(2,310	)
Net income attributable to common stockholders (numerator for basic earnings per share)		21,456			222,840			32,906			245,115
Add back: undistributed earnings allocated to participating securities		37			2,069			39			2,310
Less: undistributed earnings reallocated to participating securities		(37	)		(2,049	)		(38	)		(2,286	)
Numerator for diluted earnings per share under two class method	$	21,456		$	222,860		$	32,907		$	245,139
Denominator
Weighted-average common shares outstanding		48,640,979			48,478,076			48,613,521			48,410,486
Add: dilutive effect of stock options		211,717			467,979			229,006			506,502
Denominator for diluted earnings per share under two class method		48,852,696			48,946,055			48,842,527			48,916,988
Basic Earnings Per Common Share	$	0.44		$	4.60		$	0.68		$	5.06
Diluted Earnings Per Common Share	$	0.44		$	4.55		$	0.67		$	5.01

Diluted EPS for the three and six months ended June 30, 2014 excluded options to purchase approximately 4.2 million and 4.0 million shares, respectively, of common stock because the effect of their inclusion would be anti-dilutive. For the same periods in 2013, diluted EPS excluded options to purchase approximately 3.2 million and 3.1 million shares, respectively.