Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per common share for 2018, 2017 and 2016:



(In thousands, except per share data)		2018		2017		2016
Net income		$	343,166	$	257,682	$	206,875
Less: Preferred stock dividends		8,200		9,778		14,513
Net income applicable to common shares—Basic	(A)	$	334,966	$	247,904	$	192,362
Add: Dividends on convertible preferred stock, if dilutive		—		1,578		6,313
Net income applicable to common shares—Diluted	(B)	$	334,966	$	249,482	$	198,675
Weighted average common shares outstanding	(C)	56,300		54,703		50,278
Effect of dilutive potential common shares:
Common stock equivalents		908		998		894
Convertible preferred stock, if dilutive		—		985		3,100
Total dilutive potential common shares		908		1,983		3,994
Weighted average common shares and effect of dilutive potential common shares	(D)	57,208		56,686		54,272
Net income per common share:
Basic	(A/C)	$	5.95	$	4.53	$	3.83
Diluted	(B/D)	5.86		4.40		3.66

Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants, the Company’s convertible preferred stock and shares to be issued under the ESPP and the DDFS Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share. For diluted earnings per share, net income applicable to common shares can be affected by the conversion of the Company’s convertible preferred stock. Where the effect of this conversion would reduce the loss per share or increase the income per share, net income applicable to common shares is not adjusted by the associated preferred dividends.