Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share:

The following table presents the computations for basic and diluted earnings per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in thousands, except shares and per share amounts)
Numerator:
Net income	$	30,598	$	11,328	$	364,775	$	24,300
Denominator:
Weighted average shares outstanding - basic	62,139,833		61,958,183		62,110,498		61,944,392
Dilutive securities outstanding	706,031		83,020		634,679		292,073
Weighted average shares outstanding - diluted	62,845,864		62,041,203		62,745,177		62,236,465
Earnings per share - basic	$	0.49	$	0.18	$	5.87	$	0.39
Earnings per share - diluted	$	0.49	$	0.18	$	5.81	$	0.39
Antidilutive securities outstanding (weighted average):
Stock options	13,054		16,291		14,174		16,823
Restricted shares	0		9,049		9,249		63,405
Total antidilutive securities outstanding	13,054		25,340		23,423		80,228

Sterling's dilutive securities outstanding include warrants held by certain investors. On September 19, 2012, Sterling repurchased a warrant for 97,541 shares held by the United States Department of the Treasury (“Treasury”). The warrant had been issued to Treasury on December 5, 2008, in connection with Sterling's participation in the Capital Purchase Program of the Troubled Asset Relief Program. Sterling repurchased the warrant for $825,000, which was cancelled upon repurchase. Treasury sold all of its Sterling common stock on August 14, 2012 in an underwritten public offering.