Earnings Per Share (EPS)

3 Months Ended

Mar. 31, 2017

Earnings Per Share Reconciliation [Abstract]

Earnings Per Share (EPS)

Earnings per Share (EPS)

The Company accounts for earnings per share in accordance with ASC 260, which requires two calculations of earnings per share (EPS) to be disclosed: basic EPS and diluted EPS. Under ASC Subtopic 260-10-45, as of January 1, 2009 unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock, are considered participating securities for purposes of calculating EPS. Under the two-class method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table below.

The numerator for basic and diluted earnings per share is net earnings attributable to shareholders reduced by dividends attributable to unvested shares. The denominator for basic earnings per share is the weighted average number of common stock outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive outstanding stock options, performance share awards and restricted stock awards.

The following is a reconciliation of the weighted average basic number of common shares outstanding to the diluted number of common and common stock equivalent shares outstanding and the calculation of earnings per share using the two-class method:

	Three Months Ended
	March 31, 2017			March 31, 2016
Net income	$	10,923		$	12,842
Less: earnings attributable to unvested shares	(50		)	(49		)
Net income available to participating common shareholders	$	10,873		$	12,793
Weighted average number of participating common and potential common shares outstanding:
Basic number of participating common shares outstanding	19,376,258			19,229,501
Dilutive effect of stock equivalents	318,493			200,528
Diluted number of weighted average participating common shares outstanding	19,694,751			19,430,029
Earnings per participating common share:
Earnings per participating common share—Basic	$	0.56		$	0.67
Earnings per participating common share—Diluted	$	0.55		$	0.66
Total outstanding options, performance share awards and unvested restricted stock not included in the calculation of diluted earnings per share as the effect would be anti-dilutive	347,354			437,241