Earnings Per Share

9 Months Ended

Sep. 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 (“RSUs”), 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 is 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 is 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
	September 30, 2019			June 30, 2019			September 30, 2018
	(dollars in thousands, except per share data)
Basic
Net income	$	41,375		$	38,527		$	28,392
Less: Earnings allocated to participating securities	(432		)	(444		)	—
Net income allocated to common stockholders	$	40,943		$	38,083		$	28,392

Weighted average common shares outstanding	59,293,218			61,308,046			61,727,030
Basic earnings per common share	$	0.69		$	0.62		$	0.46

Diluted
Net income allocated to common stockholders	$	40,943		$	38,083		$	28,392

Weighted average common shares outstanding	59,293,218			61,308,046			61,727,030
Diluted effect of share-based compensation	377,637			353,727			634,774
Weighted average diluted common shares	59,670,855			61,661,773			62,361,804
Diluted earnings per common share	$	0.69		$	0.62		$	0.46



	Nine Months Ended
	September 30, 2019			September 30, 2018
	(dollars in thousands, except per share data)
Basic
Net income	$	118,620		$	83,697
Less: Earnings allocated to participating securities	(1,223		)	—
Net income allocated to common stockholders	$	117,397		$	83,697

Weighted average common shares outstanding	60,853,081			51,282,533
Basic earnings per common share	$	1.93		$	1.63

Diluted
Net income allocated to common stockholders	$	117,397		$	83,697

Weighted average common shares outstanding	60,853,081			51,282,533
Diluted effect of share-based compensation	348,777			683,114
Weighted average diluted common shares	61,201,858			51,965,647
Diluted earnings per common share	$	1.92		$	1.61

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