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, 2018.

Earnings Per Share — 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.

The following table presents the EPS calculations for the three months ended March 31, 2018 and 2017:




($ and shares in thousands, except per share data)	Three Months Ended March 31,
($ and shares in thousands, except per share data)	2018		2017
Basic
Net income	$	187,032	$	169,736

Basic weighted-average number of shares outstanding	144,664		144,249
Basic EPS	$	1.29	$	1.18

Diluted
Net income	$	187,032	$	169,736

Basic weighted-average number of shares outstanding	144,664		144,249
Diluted potential common shares ⁽¹⁾	1,275		1,483
Diluted weighted-average number of shares outstanding	145,939		145,732
Diluted EPS	$	1.28	$	1.16


(1)	Includes dilutive shares from RSUs and warrants for the three months ended March 31, 2018 and 2017.

For the three months ended March 31, 2018 and 2017, 177,807 and 193,916 weighted-average anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation.