Earnings Per Share

6 Months Ended

Jun. 30, 2016

12. Earnings Per Share

We use the two-class method of calculating earnings per share (which we refer to as “EPS”) as our non-vested restricted stock awards have non-forfeitable rights to dividends and, accordingly, represent a participating security. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. We use the treasury stock method to calculate the dilutive effect of our restricted stock units as the restricted stock units do not have participating rights.

The following table sets forth the computation of basic and diluted EPS for the three and six months ended June 30, 2016 and 2015 (in thousands, except share and per share information):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Numerator
Net income	$	13,142	$	9,798	$	21,125	$	16,149
Less: Undistributed earnings allocated to participating securities		(280)		(361)		(530)		(533)
Net income allocable to common stockholders	$	12,862	$	9,437	$	20,595	$	15,616
Denominator
Weighted average common shares outstanding - basic		20,649,910		20,556,536		20,628,598		20,533,237
Dilutive effect of restricted stock units		97,402		—		58,099		—
Weighted average common shares outstanding - diluted		20,747,312		20,556,536		20,686,697		20,533,237
Earnings per share:
Basic	$	0.62	$	0.46	$	1.00	$	0.76
Diluted	$	0.62	$	0.46	$	1.00	$	0.76