Earnings per Common Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings per Common Share

Earnings per Common Share

Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period presented, excluding unvested restricted stock. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares determined for the basic earnings per share computation plus the dilutive effects of stock-based compensation using the treasury stock method.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Net income	$	23,812	$	16,155	$	65,361	$	41,379
Less preferred stock dividends	—		863		—		2,569
Net income available to common shareholders, basic and diluted	$	23,812	$	15,292	$	65,361	$	38,810
Weighted average common shares outstanding for basic earnings per share computation	43,699,566		42,989,564		43,458,309		42,943,588
Dilutive effects of stock-based compensation	585,278		130,513		384,980		102,968
Weighted average common shares outstanding for diluted earnings per common share computation	44,284,844		43,120,077		43,843,289		43,046,556
Basic earnings per common share	$	0.54	$	0.36	$	1.50	$	0.90
Diluted earnings per common share	$	0.54	$	0.35	$	1.49	$	0.90

The Company had 875,714 and 2,814,277 stock options outstanding as of September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per common share because their effect would be anti-dilutive. The Company had 54,402 and 48,196 shares of unvested restricted stock as of September 30, 2013 and 2012, respectively, that were not included in the computation of diluted earnings per common share because performance conditions for vesting had not been met.