Annual report pursuant to Section 13 and 15(d)

EARNINGS PER COMMON SHARE

v2.4.0.8
EARNINGS PER COMMON SHARE
 12 Months Ended
Dec. 31, 2013
EARNINGS PER COMMON SHARE [Abstract]  
EARNINGS PER COMMON SHARE
NOTE 13 - EARNINGS PER COMMON SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings per common share are as follows (dollars in thousands, except per share data):
 
 
  
2013
    
2012
    
2011
  
Net income
  
$
9,549
    
$
35,490
    
$
5,829
  
Effect of induced exchange of preferred stock
    
(17,575
)
    
---
      
---
  
Net income (loss) available to common shares
  
$
(8,026
)
  
$
35,490
    
$
5,829
  
 
                        
Weighted average shares outstanding, including participating stock awards - Basic
    
27,161,888
      
27,086,792
      
22,739,990
  
 
                        
Dilutive potential common shares:
                        
Stock options
    
---
      
---
      
---
  
Conversion of preferred stock
    
---
      
---
      
---
  
Stock warrants
    
---
      
---
      
---
  
Weighted average shares outstanding - Diluted
    
27,161,888
      
27,086,792
      
22,739,990
  
 
                        
Basic earnings (loss) per common share
  
$
(0.29
)
  
$
1.31
    
$
0.26
  
Diluted earnings (loss) per common share
  
$
(0.29
)
  
$
1.31
    
$
0.26
  

The Exchange (See Note 17) by holders of convertible preferred stock for common stock and a cash premium was accounted for as an induced conversion.  Common stock was increased by the carrying (liquidation) value of the amount of convertible preferred stock exchanged.  The fair value of common stock and the cash premium issued in excess of the fair value of securities issuable pursuant to the original conversion terms was treated as a reduction to net income available to common shareholders for earnings per share purposes.

Stock options for 355,328, 472,719 and 634,427 shares of common stock were not considered in computing diluted earnings per share for 2013, 2012 and 2011, respectively, because they were antidilutive. Unvested restricted awards of 206,167 were not considered in computing earnings per share for 2013 as they were antidilutive due to the net loss available to common shares created by the preferred stock exchange.  Potential common shares associated with convertible preferred stock (for periods prior to December 30, 2013, the completion date of the Exchange) and stock warrants were not considered in computing diluted earnings per share in each period because they were antidilutive.