• Filing Date: 2013-03-14
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.6
Earnings Per Share
12 Months Ended
Dec. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share

Note 10 — Earnings Per Share

U.S. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities effect the computation of both basic and diluted earnings per share during periods of net income.

 

A summary of the numerator and denominator of the basic and fully diluted earnings per common share is presented below (dollars and shares in thousands, except per share amounts):

 

                         
    Income     Shares     Per Share  
    (Numerator)     (Denominator)     Amount  

Year Ended December 31, 2012

                       
       

Net income

  $ 30,157                  

Less: Preferred stock dividends

    (322                

Less: Income attributable to participating securities

    (488                
   

 

 

                 
       

Basic Earnings Per Share:

                       

Income allocated to common stockholders

    29,347       8,497     $ 3.45  
                   

 

 

 
       

Effect of Dilutive Securities:

                       

Stock options

    —         220          

Convertible preferred stock

    322       655          

Warrants

    —         441          
   

 

 

   

 

 

         

Diluted Earnings Per Share:

                       

Income available to common stockholders and assumed conversions

  $ 29,669       9,813     $ 3.02  
   

 

 

   

 

 

   

 

 

 
       

Year Ended December 31, 2011

                       
       

Net income

  $ 9,964                  

Less: Preferred stock dividends

    (815                
   

 

 

                 
       

Basic Earnings Per Share:

                       

Income available to common stockholders

    9,149       6,132     $ 1.49  
                   

 

 

 
       

Effect of Dilutive Securities:

                       

Stock options

    —         352          

Convertible preferred stock

    815       961          
   

 

 

   

 

 

         

Diluted Earnings Per Share:

                       

Income available to common stockholders and assumed conversions

  $ 9,964       7,445     $ 1.34  
   

 

 

   

 

 

   

 

 

 
       

Year Ended December 31, 2010

                       
       

Net income

  $ 5,422                  

Less: Preferred stock dividends

    —                    
   

 

 

                 
       

Basic Earnings Per Share:

                       

Income available to common stockholders

    5,422       6,179     $ 0.88  
                   

 

 

 
       

Effect of Dilutive Securities:

                       

Stock options

    —         495          
   

 

 

   

 

 

         
       

Diluted Earnings Per Share:

                       

Income available to common stockholders and assumed conversions

  $ 5,422       6,674     $ 0.81  
   

 

 

   

 

 

   

 

 

 

 

For the years ended December 31, 2011 and 2010, 2,738,335 and 1,738,335 warrants to purchase 1,405,001 and 905,001 shares of common stock, respectively, were excluded from the computation of diluted earnings per share because the exercise price of $9.10 exceeded the average market price of the Company’s common stock. See Note 11 – “Stockholders’ Equity” for a summary of warrant activity over the last three years. On September 26, 2012, the Company’s Board of Directors fixed October 27, 2012 as the cancellation date for the IPO warrants. As such, the record holders of the IPO warrants had no further rights under the warrants on and after October 27, 2012. There were no preferred shares outstanding in 2010.