Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

11. Earnings per Share

Net income per common share reflects application of the two-class method. The Company’s Series B shareholders were entitled to participate in any dividends paid on shares of the Company’s common stock on a pro rata basis with the holders of the Company’s common stock. Under the two-class method, during periods of net income, participating securities are allocated a proportional share of net income. During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. Participating securities have the effect of diluting both basic and diluted earnings per share (“EPS”) during periods of net income. The application of the two-class method is no longer applicable to periods subsequent to the conversion of all of the outstanding Series B. See Note 6 for additional information.

Basic EPS excludes dilution for potential common stock issuances and is computed by dividing basic net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted-average number of shares is increased by the dilutive effect of RSUs and common stock options using the treasury stock method.

The computation of basic and diluted EPS is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012			2011
($ in thousands, except per share amounts)
Net Income	$	8,367	$	3,196		$	13,817		$	7,533
Preferred stockholder dividends		—		(704	)		—			(1,408	)
Allocation of earnings to preferred stockholders		—		(449	)		(64	)		(1,103	)
Net Income Attributable to Common Stockholders	$	8,367	$	2,043		$	13,753		$	5,022
Shares:
Basic: Weighted-average number of shares outstanding		7,763		6,238			7,615			6,238
Plus: Incremental shares from assumed conversion of dilutive instruments		318		649			408			660
Diluted: Weighted-average number of shares outstanding		8,081		6,887			8,023			6,898
Earnings per share - basic	$	1.08	$	0.33		$	1.81		$	0.81
Earnings per share - diluted	$	1.04	$	0.30		$	1.71		$	0.73

For the three and six months ended June 30, 2012 and June 30, 2011 there were no non-participating securities excluded from the above computation of weighted-average shares for diluted EPS.