Earnings Per Share

12 Months Ended

Dec. 31, 2019

The following table sets forth the computation of basic and diluted earnings per common share for 2019, 2018 and 2017:



(In thousands, except per share data)		2019		2018		2017
Net income		$	355,697	$	343,166	$	257,682
Less: Preferred stock dividends		8,200		8,200		9,778
Net income applicable to common shares—Basic	(A)	$	347,497	$	334,966	$	247,904
Add: Dividends on convertible preferred stock, if dilutive		—		—		1,578
Net income applicable to common shares—Diluted	(B)	$	347,497	$	334,966	$	249,482
Weighted average common shares outstanding	(C)	56,857		56,300		54,703
Effect of dilutive potential common shares:
Common stock equivalents		762		908		998
Convertible preferred stock, if dilutive		—		—		985
Total dilutive potential common shares		762		908		1,983
Weighted average common shares and effect of dilutive potential common shares	(D)	57,619		57,208		56,686
Net income per common share:
Basic	(A/C)	$	6.11	$	5.95	$	4.53
Diluted	(B/D)	6.03		5.86		4.40

Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants, the Company’s convertible preferred stock and shares to be issued under the ESPP and the DDFS Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share. For diluted earnings per share, net income applicable to common shares can be affected by the conversion of any convertible preferred stock. Where the effect of this conversion would reduce the loss per share or increase the income per share, net income applicable to common shares is not adjusted by the associated preferred dividends.