Earnings Per Share

12 Months Ended

Dec. 31, 2015

13.

Earnings Per Share

Diluted earnings per share includes common shares assumed issued under the “treasury stock method,” which reflects the potential dilution that would occur if any outstanding options are exercised. Diluted earnings per share also includes the “if converted” method for participating securities if the result is dilutive. Diluted EPS is calculated as the more dilutive result of either the treasury method or the two-class method.

The calculation of basic and diluted EPS for the years ended December 31, 2015, 2014 and 2013 are presented below.


	For the Year Ended December 31,
	2015		2014		2013
	(in thousands, except earnings per share amounts)
Basic EPS:
Net income, as reported	$	70,462	$	53,666	$	43,637
Less allocated income to participating securities		—		—		142

Net income available to common shareholders – basic	$	70,462	$	53,666	$	43,495

Basic weighted-average common shares		18,941		18,646		18,373
Basic earnings per share	$	3.72	$	2.88	$	2.37

Diluted EPS:
Net income available to common shareholders—diluted	$	70,462	$	53,666	$	43,495

Diluted weighted average common shares:
Weighted average common shares		18,941		18,646		18,373
Stock options and performance shares		178		282		376

Diluted weighted average common shares		19,119		18,928		18,749
Diluted earnings per common share	$	3.69	$	2.84	$	2.32

The table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation. Under the two-class method, unvested stock options, and out-of-money vested stock options are not considered to be participating securities.


	Years Ended
	2015		2014		2013
Basic weighted average common shares		18,941,077		18,646,128		18,373,033
Add: Other common shares eligible for common dividends:
Weighted average restricted shares and stock options (including tax benefit component)		178,109		282,376		375,776

Diluted weighted average common shares		19,119,186		18,928,504		18,748,809