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Earnings Per Share
 9 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
Earnings Per Share
EARNINGS PER SHARE
Share-based payment awards that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities that are included in the calculation of earnings per share using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated for common stock and participating securities according to dividends declared and participating rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends.
The following table presents the calculation of basic and diluted earnings per share for the periods indicated.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands, except per share data)
2016
 
2015
 
2016
 
2015
Earnings per common share - basic
 
 
 
 
 
 
 
Net income
$
48,068

 
$
42,475

 
$
141,647

 
$
98,437

Preferred stock dividends
(3,590
)
 
—

 
(7,020
)
 
—

Dividends and undistributed earnings allocated to unvested restricted shares
(462
)
 
(492
)
 
(1,464
)
 
(1,171
)
Earnings allocated to common shareholders - basic
$
44,016

 
$
41,983

 
$
133,163

 
$
97,266

Weighted average common shares outstanding
40,618

 
40,514

 
40,699

 
37,436

Earnings per common share - basic
$
1.08

 
$
1.04

 
$
3.27

 
$
2.60

Earnings per common share - diluted
 
 
 
 
 
 
 
Earnings allocated to common shareholders - basic
$
44,016

 
$
41,983

 
$
133,163

 
$
97,266

Dividends and undistributed earnings allocated to unvested restricted shares
(4
)
 
(3
)
 
(17
)
 
(41
)
Earnings allocated to common shareholders - diluted
$
44,012

 
$
41,980

 
$
133,146

 
$
97,225

Weighted average common shares outstanding
40,618

 
40,514

 
40,699

 
37,436

Dilutive potential common shares - stock options
193

 
100

 
119

 
96

Weighted average common shares outstanding - diluted
40,811

 
40,614

 
40,818

 
37,532

Earnings per common share - diluted
$
1.08

 
$
1.03

 
$
3.26

 
$
2.59


For the three months ended September 30, 2016, and 2015, the calculations for basic shares outstanding exclude the weighted average shares owned by the Recognition and Retention Plan (“RRP”) of 434,468, and 616,307, respectively. For the nine months ended September 30, 2016, and 2015, basic shares outstanding exclude 456,921 and 606,621 shares owned by the RRP, respectively.
The effects from the assumed exercises of 73,882 and 82,310 stock options were not included in the computation of diluted earnings per share for the three months ended September 30, 2016, and 2015, respectively, because such amounts would have had an antidilutive effect on earnings per common share. For the nine months ended September 30, 2016, and 2015, the effects from the assumed exercise of 268,257 and 79,690 stock options, respectively, were not included in the computation of diluted earnings per share because such amounts would have had an antidilutive effect on earnings per common share.