Earnings per Share

The Corporation uses the two-class method to calculate earnings per share as the unvested restricted stock issued under the Corporation's equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period. The table also notes anti-dilutive options which are those options with weighted average exercise prices in excess of the weighted average market value for the periods presented.

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars and shares in thousands, except per share data)	2017			2016		2017			2016
Numerator:
Net income	$	11,196		$	58	$	33,830		$	12,587
Net income allocated to unvested restricted stock	(96		)	—		(330		)	(102		)
Net income allocated to common shares	$	11,100		$	58	$	33,500		$	12,485
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	26,437			26,274		26,388			21,720
Effect of dilutive securities—employee stock options	105			67		102			41
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	26,542			26,341		26,490			21,761
Basic earnings per share	$	0.42		$	—	$	1.27		$	0.58
Diluted earnings per share	$	0.42		$	—	$	1.27		$	0.57
Average anti-dilutive options excluded from computation of diluted earnings per share	185			201		166			550