Earnings Per Share

Earnings per share of common stock is calculated on both a basic and diluted basis based on the weighted average number of common and common equivalent shares outstanding, excluding common shares in treasury. Basic earnings per share excludes dilution and is computed by dividing income available to stockholders by the weighted average number of common shares outstanding for the period. The Company has no outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends that would be considered participating securities for the basic calculation. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then would share in earnings and excludes common shares in treasury. Stock options exercisable for shares of common stock are excluded from the computation of diluted earnings per share if they are anti-dilutive due to their exercise price exceeding the average market price during the period.

The impact of stock options, which are anti-dilutive are excluded from the computations of diluted earnings per share. The dilutive impact of these securities could be included in future computations of diluted earnings per share if the market price of the common stock increases. The weighted average number of stock options excluded was 17,524 for December 31, 2017, 82,760 for December 31, 2016 and 222,858 for December 31, 2015.

A reconciliation of the numerators and denominators used in basic and diluted earnings per share computations is presented in the table below.



	Income/(Loss) (numerator)		Shares (denominator)	Per Share Amount
	(dollars in thousands, except share data)
For the year ended December 31, 2017:
Net income applicable to earnings per share	$	60,100
Basic earnings per share: Income available to common stockholders	60,100		37,705,556	$	1.59
Effect of dilutive securities: Warrants and stock option plans	—		805,705
Diluted earnings per share: Income available to common stockholders	$	60,100	38,511,261	$	1.56
For the year ended December 31, 2016:
Net income applicable to earnings per share	$	40,103
Basic earnings per share: Income available to common stockholders	40,103		26,931,634	$	1.49
Effect of dilutive securities: Warrants and stock option plans	—		507,525
Diluted earnings per share: Income available to common stockholders	$	40,103	27,439,159	$	1.46
For the year ended December 31, 2015:
Net income applicable to earnings per share	$	25,515
Basic earnings per share: Income available to common stockholders	25,515		21,156,668	$	1.21
Effect of dilutive securities: Warrants and stock option plans	—		332,030
Diluted earnings per share: Income available to common stockholders	$	25,515	21,488,698	$	1.19