Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the total weighted average number of common shares outstanding, which includes unvested participating securities. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and as such are included in the calculation of earnings per share. The Company’s unvested restricted stock unit awards are considered participating securities. Therefore, weighted average common shares outstanding used for computing basic earnings per common share includes common shares outstanding plus unvested restricted stock unit awards. The computation of diluted earnings per share includes the additional dilutive effect of stock options outstanding and other common stock equivalents during the period. Common stock equivalents that are anti-dilutive are

not

included in the computation of diluted earnings per common share. The numerator for calculating basic and diluted earnings per common share is net income available to common shareholders. The shares held in the Company’s Employee Benefit Trust are

not

included in shares outstanding for purposes of calculating earnings per common share.

Earnings per common share have been computed based on the following:

	For the three months ended						For the six months ended
	June 30,						June 30,
	2017			2016			2017			2016
	(In thousands, except per share data)
Net income, as reported	$	12,725		$	30,435		$	24,985		$	39,996
Divided by:
Weighted average common shares outstanding		29,135			29,022			29,077			29,059
Weighted average common stock equivalents		1			12			3			14
Total weighted average common shares outstanding and common stock equivalents		29,136			29,034			29,080			29,073

Basic earnings per common share	$	0.44		$	1.05		$	0.86		$	1.38
Diluted earnings per common share (1)	$	0.44		$	1.05		$	0.86		$	1.38
Dividend payout ratio		40.9	%		16.2	%		41.9	%		24.6	%

(

)

For the

three

and

six

months ended

June 30, 2017

and

2016,

there were

stock options that were anti-dilutive.