EARNINGS PER SHARE

The two-class method is utilized for the computation of the Company's earnings per share (“EPS”). The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents. The Company’s restricted stock awards are participating securities. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period.

The following table sets forth the calculation of EPS for the three and nine months ended September 30, 2018 and 2017.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Weighted average basic common shares outstanding	19,253		20,222		19,859		20,475
Dilutive effect of employee stock purchases, net of assumed repurchase of treasury stock	8		3		9		5
Weighted average dilutive common shares outstanding	19,261		20,225		19,868		20,480
Basic:
Net income	$	34,778	$	29,881	$	127,054	$	102,953
Less: Earnings allocated to participating securities	1,182		1,024		4,308		3,660
Net income available to basic common shares	$	33,596	$	28,857	$	122,746	$	99,293
Basic earnings per common share	$	1.74	$	1.43	$	6.18	$	4.85
Diluted:
Net income	$	34,778	$	29,881	$	127,054	$	102,953
Less: Earnings allocated to participating securities	1,181		1,023		4,306		3,659
Net income available to diluted common shares	$	33,597	$	28,858	$	122,748	$	99,294
Diluted earnings per common share	$	1.74	$	1.43	$	6.18	$	4.85