Earnings Per Share

3 Months Ended

Mar. 31, 2018

8. Earnings Per Share

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Treasury stock is excluded from the weighted average number of shares of common stock outstanding. Diluted earnings per share attributable to common stockholders is computed based on the weighted average number of shares of common stock and dilutive securities outstanding during the period. Dilutive securities are common stock equivalents that are freely exercisable into common stock at less than market prices or otherwise dilute earnings if converted. The net effect of common stock equivalents is based on the incremental common stock that would be issued upon the vesting of restricted stock using the treasury stock method. Common stock equivalents are not included in diluted earnings per share when their inclusion is antidilutive. Additionally, redeemable preferred stock is not convertible and does not affect dilutive shares.

The computations of diluted weighted average earnings per common share do not include approximately 275 and 700 restricted shares for the periods ended March 31, 2018 and March 31, 2017, respectively, as the effect of their inclusion would have been antidilutive to earnings per share. The difference between average common shares outstanding to calculate basic and assuming full dilution is due to restricted stock issued under the 2007 Stock Incentive Plan.

The following table presents the calculation of basic and diluted EPS:


	Three Months Ended March 31,
	2018		2017
	(in thousands)
Net income attributable to common shareholders	$	6,261	$	7,839

Basic weighted average common shares outstanding		6,104		6,114
Potentially dilutive common shares		152		149
Diluted weighted average common shares outstanding		6,256		6,263

Basic weighted average earnings per common share	$	1.03	$	1.28
Diluted weighted average earnings per common share	$	1.00	$	1.25