Earnings Per Share

The Company uses the two-class method in calculating basic and diluted earnings per share. Net income is allocated between our common stock and other participating securities based on their participation rights. Diluted net income per share has been computed using the weighted average number of shares of common stock outstanding and other dilutive securities. The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations and the calculation of basic and diluted earnings per share (in thousands, except share and per share data):



	Three Months Ended September 30,				Nine Months Ended September 30,
Numerator	2019		2018		2019		2018
Net income	$	25,913	$	19,000	$	60,329	$	36,398
Less: Preferred stock dividends	4,147		1,255		10,957		1,271
Less: Undistributed earnings allocated to preferred stock	1,306		451		963		—
Net income attributable to common shareholders (for basic and diluted earnings per share)	20,460		17,294		48,409		35,127

Denominator
Weighted-average common shares outstanding for basic earnings per share	42,795,038		35,468,648		41,287,548		32,977,572
Effect of dilutive shares:
Unvested restricted shares	12,735		14,209		12,836		10,007
Weighted-average common shares outstanding for diluted earnings per share	42,807,773		35,482,857		41,300,384		32,987,579

Basic earnings per share	$	0.48	$	0.49	$	1.17	$	1.07
Diluted earnings per share	$	0.48	$	0.49	$	1.17	$	1.07