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 nine months ended September 30, 2018 and 2017:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(in thousands except per share)
Basic EPS:
Net income	$	46,415	$	40,769	$	128,134	$	97,100
Less: Earnings allocated to participating securities:
Preferred shares	—		—		—		4
Nonvested restricted shares	504		558		1,413		1,325
Earnings allocated to common shareholders	$	45,911	$	40,211	$	126,721	$	95,771
Weighted average common shares outstanding	72,427		57,566		72,370		57,459
Basic earnings per common share	$	0.63	$	0.70	$	1.75	$	1.67
Diluted EPS:
Earnings allocated to common shareholders	$	45,911	$	40,211	$	126,721	$	95,771
Weighted average common shares outstanding	72,427		57,566		72,370		57,459
Dilutive effect of equity awards	5		5		4		6
Weighted average diluted common shares outstanding	72,432		57,571		72,374		57,465
Diluted earnings per common share	$	0.63	$	0.70	$	1.75	$	1.67
Potentially dilutive share options that were not included in the computation of diluted EPS because to do so would be anti-dilutive	—		12		5		13