10. Earnings Per Share
Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the exercise of stock options, vesting of restricted stock and conversion of preferred stock.
The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data):
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
Numerator for EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
26,882 |
|
|
$ |
30,298 |
|
|
$ |
85,756 |
|
|
$ |
77,332 |
|
|
Less: Preferred stock dividends |
|
(3 |
) |
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
|
Income available to common stockholders |
$ |
26,879 |
|
|
$ |
30,295 |
|
|
$ |
85,748 |
|
|
$ |
77,324 |
|
|
Denominator for EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
35,042 |
|
|
|
34,911 |
|
|
|
34,878 |
|
|
|
34,837 |
|
|
Plus: Assumed conversion of stock-based compensation (1) |
|
656 |
|
|
|
1,063 |
|
|
|
691 |
|
|
|
1,050 |
|
|
Assumed conversion of preferred stock |
|
25 |
|
|
|
25 |
|
|
|
25 |
|
|
|
31 |
|
|
Weighted average diluted common shares outstanding |
|
35,723 |
|
|
|
35,999 |
|
|
|
35,594 |
|
|
|
35,918 |
|
|
Basic earnings per common share |
$ |
0.77 |
|
|
$ |
0.87 |
|
|
$ |
2.46 |
|
|
$ |
2.22 |
|
|
Diluted earnings per common share |
$ |
0.75 |
|
|
$ |
0.84 |
|
|
$ |
2.41 |
|
|
$ |
2.15 |
|
|
(1) |
Represents the dilutive effect of unvested restricted stock and unexercised stock options. |
|