Note 6 - Earnings Per Common Share >. The calculations of earnings per common share for the years ended December 31, 2001, 2000 and 1999 follow: Year ended December 31, 2001 2000 1999 (In thousands, except per share data) Net income  $86,001 $67,276 $62,075 Less: Preferred stock dividend  (16,508 (7,408 (4,275 Net income-attributable to common stockholders $69,493 $59,868 $57,800 Earnings per common share-basic: Net income - available to common stockholders $ 69,493 $59,868 $ 57,800 Weighted average common shares outstanding 26,567 26,943 28,941 Earnings per common share-basic  $ 2.61 $ 2.22 $ 2.00 Earnings per common share-diluted: Net income - available to common stockholders $69,493 $59,868 $57,800 Weighted average common shares and share equivalents: Average common shares outstanding 26,567 26,943 28,941 Common stock equivalents - Options 195 202 258 Total 26,762 27,145 29,199 Earnings per common share-diluted $ 2.60 $ 2.21 $ 1.98 ) ) ) Had compensation cost for the stock options granted during 2000 and 1999 been determined based on the fair value at the grant date (as a result of the requirement explained in Note 2 - Stock option plan), the Corporation’s net income and earnings per common share would have been reduced to the pro forma amounts indicated, as follow: Year ended December 31, Pro forma information: 2000 1999  (In thousands, except per share data) Employees’ compensation and benefits $51,763 $50,005 Net income-available to common stockholders $58,119 $56,341 Earnings per common share-basic $ 2.16 $ 1.95 Earnings per common share-diluted $ 2.14 $ 1.93 Management uses the binomial model for the computation of the fair value of each option granted to buy shares of the Corporation’s common stock. The fair value of each option granted during 2000 and 1999 was estimated using the following assumptions: weighted dividend growth of 0% (2000) and 22.38% (1999); expected life of 3.11 years (2000) and 10 years (1999); weighted expected volatility of 31.74% (2000) and 29.46% (1999); and weighted risk-free interest rate of 5.36% (2000) and 6.04% (1999). The weighted estimated fair value of the options granted was $5.50 (2000) and $6.54 (1999) per option. 0 61 First BanCorp.> 2001