Note 13 — Stockholders’ Equity and Earnings Per Share

Warrant — The Company acquired MetroCorp Bancshares, Inc., (“MetroCorp”) on January 17, 2014. Prior to the acquisition, MetroCorp had an outstanding warrant to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holder were converted into the right to acquire 230,282 shares of East West’s common stock until January 16, 2019. The warrant has not been exercised as of March 31, 2017.

EPS — Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period, plus common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method. With the adoption of ASU 2016-09 during the first quarter of 2017, the impact of excess tax benefits and deficiencies is no longer included in the calculation of diluted EPS. In addition, the adoption of ASU 2016-09 favorably impacted basic and diluted EPS by $0.03 per share each for the three months ended March 31, 2017. See Note 2 — Current Accounting Developments to the Consolidated Financial Statements for additional information.

The following table presents the EPS calculations for the three months ended March 31, 2017 and 2016:




	Three Months Ended March 31,
($ and shares in thousands, except per share data)	2017		2016
Basic
Net income	$	169,736	$	107,516

Basic weighted average number of shares outstanding	144,249		143,958
Basic EPS	$	1.18	$	0.75

Diluted
Net income	$	169,736	$	107,516

Basic weighted average number of shares outstanding	144,249		143,958
Diluted potential common shares ⁽¹⁾	1,483		845
Diluted weighted average number of shares outstanding	145,732		144,803
Diluted EPS	$	1.16	$	0.74


(1)	Includes dilutive shares from RSUs and warrants for the three months ended March 31, 2017 and 2016.

For the three months ended March 31, 2017 and 2016, approximately 194 thousand and 13 thousand weighted average anti-dilutive shares from RSUs, respectively, were excluded from the diluted EPS computation.