Earnings per Common Share

The Company applies the two-class method of computing basic and diluted EPS. Under the two-class method, EPS is determined for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company issues restricted shares under share-based compensation plans and preferred shares which qualify as participating securities.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2017 and 2016:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
	(in thousands except per share)
Basic EPS:
Net income	$	27,132	$	25,405	$	56,331	$	46,664
Less: Earnings allocated to participating securities:
Preferred shares	—		45		3		82
Nonvested restricted shares	362		343		759		578
Earnings allocated to common shareholders	$	26,770	$	25,017	$	55,569	$	46,004
Weighted average common shares outstanding	57,520		57,185		57,437		57,149
Basic earnings per common share	$	0.47	$	0.44	$	0.97	$	0.80
Diluted EPS:
Earnings allocated to common shareholders	$	26,770	$	25,017	$	55,569	$	46,004
Weighted average common shares outstanding	57,520		57,185		57,437		57,149
Dilutive effect of equity awards	5		10		5		11
Weighted average diluted common shares outstanding	57,525		57,195		57,442		57,160
Diluted earnings per common share	$	0.47	$	0.44	$	0.97	$	0.80
Potentially dilutive share options that were not included in the computation of diluted EPS because to do so would be anti-dilutive	12		19		13		23