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 months ended March 31, 2018 and 2017:



	Three Months Ended
	March 31,
	2018		2017
	(in thousands except per share)
Basic EPS:
Net income	$	39,970	$	29,199
Less: Earnings allocated to participating securities:
Preferred shares	—		3
Nonvested restricted shares	437		397
Earnings allocated to common shareholders	$	39,533	$	28,799
Weighted average common shares outstanding	72,300		57,388
Basic earnings per common share	$	0.55	$	0.50
Diluted EPS:
Earnings allocated to common shareholders	$	39,533	$	28,799
Weighted average common shares outstanding	72,300		57,388
Dilutive effect of equity awards	5		6
Weighted average diluted common shares outstanding	72,305		57,394
Diluted earnings per common share	$	0.55	$	0.50
Potentially dilutive share options that were not included in the computation of diluted EPS because to do so would be anti-dilutive	12		14