Earnings Per Share

3 Months Ended

Mar. 31, 2017

8.	EARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested.

In accordance with ASC Topic 260 “Earnings Per Share”, the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings. Certain unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The outstanding shares of restricted stock granted in 2015 are considered participating securities, while all other outstanding shares of restricted stock are not considered participating securities.

The following is a reconciliation of net income and the number of shares of common stock used in the computation of basic and diluted earnings per share:

	Three Months Ended
	March 31, 2017			March 31, 2016
Numerator:
Net income	$	25,614		$	18,588
Less: income allocable to participating securities		(193	)		(232	)
Income allocable to common shares	$	25,421		$	18,356
Add back: undistributed earnings allocable to participating securities	$	193		$	232
Less: undistributed earnings reallocated to participating securities		(189	)		(227	)
Numerator for diluted earnings per share	$	25,425		$	18,361
Denominator:
Weighted average common shares outstanding		50,315,455			50,315,455
Weighted average common shares repurchased		(1,122,261	)		—
Adjustment for vested restricted stock		8,113,993			6,817,454
Shares for calculating basic earnings per share		57,307,187			57,132,909
Dilutive effect of unvested restricted stock		1,218,793			1,229,131
Shares for calculating diluted earnings per share		58,525,980			58,362,040
Earnings per share:
Basic	$	0.44		$	0.32
Diluted	$	0.43		$	0.31