Earnings Per Common Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The two-class method is used in the calculation of basic and diluted earnings per share.  Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participating rights in undistributed earnings. 

Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Corporation’s share-based compensation plans, restricted stock units that may be converted to stock, restricted stock awards and stock to be issued under the deferred stock compensation plan for non-employee directors.

The factors used in the earnings per share computation follow: 

	Three Months Ended March 31,
(In thousands, except per share data)	2017			2016
Net income	$	47,604		$	23,605
Net income allocated to participating securities	226			—
Net income allocated to common shareholders (1)	$	47,378		$	23,605
Weighted average common shares - issued	70,969			38,198
Average unvested restricted share awards	(341		)	—
Weighted average common shares outstanding - basic	70,628			38,198
Effect of dilutive securities
Weighted average common stock equivalents	787			323
Weighted average common shares outstanding - diluted	71,415			38,521
EPS available to common shareholders
Basic earnings per common share	$	0.67		$	0.61
Diluted earnings per common share	$	0.67		$	0.60

(1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options and warrants to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share.

For effect of dilutive securities, the assumed average stock valuation is $51.81 per share and $33.29 per share for the three months ended March 31, 2017 and 2016, respectively.

The average number of exercisable employee stock options outstanding that were "out-of-the-money," whereby the option exercise price per share exceeded the market price per share and, therefore, were not included in the computation of diluted earnings per common share because they would have been anti-dilutive totaled zero and 121,050 for the three months ended March 31, 2017 and 2016, respectively.