Note 3. Earnings Per Share

The Company computes earnings per share (“EPS”) in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. The Company has no participating unvested common shares which contain nonforfeitable rights to dividends and applies the treasury stock method in computing basic and diluted earnings per share.

Basic EPS is calculated by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period.

The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested, and includes the “if converted” method for participating securities if the effect is dilutive.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
	(in thousands, except share and per share amounts)
Basic EPS:
Net income available to common shareholders - basic	$	16,577	$	17,896	$	45,582	$	58,792
Basic weighted average common shares		19,171,912		19,121,947		19,161,529		19,092,298
Basic earnings per common share	$	0.86	$	0.94	$	2.38	$	3.08
Diluted EPS:
Net income available to common shareholders - diluted	$	16,577	$	17,896	$	45,582	$	58,792
Diluted weighted average common shares:
Weighted average common shares		19,171,912		19,121,947		19,161,529		19,092,298
Stock options and restricted stock		64,202		68,244		74,426		94,100
Diluted weighted average common shares		19,236,114		19,190,191		19,235,955		19,186,398
Diluted earnings per common share	$	0.86	$	0.93	$	2.37	$	3.06