Earnings Per Share

6 Months Ended

Jun. 30, 2019

In February 2019, the Company’s Compensation Committee of Board of Directors reviewed the various forms of outstanding equity awards, including restricted stock and restrict stock units, and approved that unvested restricted stock awards will be considered participating securities. As a result of the different treatment of unvested restricted stock and unvested RSUs, beginning in 2019, earnings per common share is computed using the two-class method.

Under the two-class method, distributed and undistributed earnings allocable to participating securities are deducted from net income to determine net income allocable to common shareholders, which is then used in the numerator of both basic and diluted earnings per share calculations. Basic earnings per common share are computed by dividing net income allocable to common shareholders by the weighted average number of common shares outstanding for the reporting period, excluding outstanding participating securities. Diluted earnings per common share are computed by dividing net income allocable to common shareholders by the weighted average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares, but excludes awards considered participating securities. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect.

The following tables set forth the Company’s earnings per share calculations for the periods indicated:



	Three Months Ended
	June 30, 2019			March 31, 2019			June 30, 2018
	(dollars in thousands, except per share data)
Basic
Net income	$	38,527		$	38,718		$	27,303
Less: Earnings allocated to participating securities	(444		)	(347		)	—
Net income allocated to common stockholders	38,083			38,371			27,303

Weighted average common shares outstanding	61,308,046			61,987,605			46,053,077
Basic earnings per common share	$	0.62		$	0.62		$	0.59

Diluted
Net income allocated to common stockholders	$	38,083		$	38,371		$	27,303

Weighted average common shares outstanding	61,308,046			61,987,605			46,053,077
Diluted effect of share-based compensation	353,727			298,178			649,891
Weighted average diluted common shares	61,661,773			62,285,783			46,702,968
Diluted earnings per common share	$	0.62		$	0.62		$	0.58



	Six Months Ended
	June 30, 2019			June 30, 2018
	(dollars in thousands, except per share data)
Basic
Net income	$	77,245		$	55,305
Less: Earnings allocated to participating securities	(791		)	—
Net income allocated to common stockholders	76,454			55,305

Weighted average common shares outstanding	61,645,940			45,973,727
Basic earnings per common share	$	1.24		$	1.20

Diluted
Net income allocated to common stockholders	$	76,454		$	55,305

Weighted average common shares outstanding	61,645,940			45,973,727
Diluted effect of share-based compensation	334,193			704,396
Weighted average diluted common shares	61,980,133			46,678,123
Diluted earnings per common share	$	1.23		$	1.18

For the three and six months ended June 30, 2019, there were no RSUs or stock options that were anti-dilutive.