Exhibit 11
Statement of Computation of Per Share Earnings
We compute earnings per share using the two-class method in accordance with Accounting Standards Codification Topic No. 260, "Earnings Per Share." The two-class method is an allocation of earnings between the holders of common stock and a company's participating security holders. Our outstanding non-vested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at September 30, 2018 or 2017.
Contingently issuable shares associated with outstanding service-based restricted stock units were not included in the earnings per share calculations for the three-month and nine-month periods ended September 30, 2018 and 2017 as the vesting conditions had not been satisfied.
The composition of basic and diluted earnings per share were as follows:
(Dollars in thousands, except per share amounts)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 9,445 | $ | 3,334 | $ | 51,322 | $ | 7,564 | ||||||||
Less: distributed earnings allocated to non-vested stock | - | - | - | - | ||||||||||||
Less: undistributed earnings allocated to non-vested restricted stock | (4 | ) | (3 | ) | (26 | ) | (15 | ) | ||||||||
Numerator for basic earnings per share | $ | 9,441 | $ | 3,331 | $ | 51,296 | $ | 7,549 | ||||||||
Effect of dilutive securities: | ||||||||||||||||
Add: undistributed earnings allocated to non-vested restricted stock | 4 | 3 | 26 | 15 | ||||||||||||
Less: undistributed earnings reallocated to non-vested restricted stock | (4 | ) | (3 | ) | (26 | ) | (15 | ) | ||||||||
Numerator for diluted earnings per share | $ | 9,441 | $ | 3,331 | $ | 51,296 | $ | 7,549 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding – basic | 43,724,195 | 43,705,234 | 43,719,215 | 43,662,672 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and other awards | 8,725 | 9,519 | 6,155 | 8,748 | ||||||||||||
Weighted average shares outstanding – diluted | 43,732,920 | 43,714,753 | 43,725,370 | 43,671,420 | ||||||||||||
Basic earnings per share | $ | 0.22 | $ | 0.08 | $ | 1.17 | $ | 0.17 | ||||||||
Diluted earnings per share | $ | 0.22 | $ | 0.08 | $ | 1.17 | $ | 0.17 | ||||||||
