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Earnings Per Common Share
3 Months Ended
Mar. 31, 2018
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)
 
2018
 
2017
Net income
 
$
70,170

 
$
47,604

  Net income allocated to participating securities
 
64

 
226

Net income allocated to common shareholders (1)
 
$
70,106

 
$
47,378

Weighted average common shares - issued
 
71,297

 
70,969

  Average unvested restricted share awards
 
(66
)
 
(341
)
Weighted average common shares outstanding - basic
 
71,231

 
70,628

Effect of dilutive securities
 
 
 
 
  Weighted average common stock equivalents
 
675

 
787

Weighted average common shares outstanding - diluted
 
71,906

 
71,415

EPS available to common shareholders
 
 
 
 
  Basic earnings per common share
 
$
0.99

 
$
0.67

  Diluted earnings per common share
 
$
0.97

 
$
0.67


(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 average stock valuation is $56.23 per share and $51.81 per share for the three months ended March 31, 2018 and 2017, 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 71,046 and zero for the three months ended March 31, 2018 and 2017, respectively.