Income per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Income per Share

(6) Income per Share

Income per common share for the three and nine months ended September 30, 2014 and 2013 are based on the weighted average number of common shares outstanding during the period. The effects of potentially dilutive securities that are anti-dilutive are not included in the computation of dilutive income per share. We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic and diluted EPS calculations using the two-class method. All of our restricted common shares are currently participating securities.

Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings allocated 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, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. As the number of restricted common shares outstanding during the period was immaterial to the basic and diluted EPS calculations, use of the two-class method had no impact on our basic and diluted EPS calculations for the three and nine month periods ended September 30, 2014 and 2013.

The following table sets forth the computation of basic and diluted net income per common share for the three and nine month periods ended September 30, 2014 and 2013 (amounts in thousands, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Basic net income per share:
Net income	$	15,300	$	13,953	$	38,462	$	29,539
Weighted average number of shares of common stock outstanding		35,206		35,099		35,142		35,022
Net income per share of common stock – basic	$	0.43	$	0.40	$	1.09	$	0.84
Diluted net income per share:
Net income	$	15,300	$	13,953	$	38,462	$	29,539
Weighted average number of shares of common stock outstanding		35,206		35,099		35,142		35,022
Effect of dilutive securities:
Effect of dilutive stock options		24		—		24		—
Effect of dilutive non-vested restricted stock		36		70		74		108
Weighted average number of shares of common stock outstanding – diluted		35,266		35,169		35,240		35,130
Net income per share of common stock – diluted	$	0.43	$	0.40	$	1.09	$	0.84
Common shares excluded from the denominator as anti-dilutive:
Stock options		—		—		—		—
Non-vested restricted stock		—		1		—		—