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Earnings per Common Share
 12 Months Ended
Dec. 31, 2013
Earnings per Common Share  
Earnings per Common Share

Note 14. Earnings per Common Share

        The Company applies the two-class method of computing basic and diluted EPS. Under the two-class method, EPS is determined for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company grants restricted stock and restricted stock units under a share-based compensation plan that qualify as participating securities.

        The computation of basic and diluted EPS is presented in the following table:

 
   For the year ended December 31,  
(in thousands, except per share amounts)
  2013   2012   2011  

Basic EPS:

                    

Net income attributable to City National Corporation

   $ 230,009   $ 208,049   $ 172,421  

Less: Dividends on preferred stock

     9,625     —     —  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income available to common shareholders

   $ 220,384   $ 208,049   $ 172,421  

Less: Earnings allocated to participating securities

     2,555     3,008     2,678  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Earnings allocated to common shareholders

   $ 217,829   $ 205,041   $ 169,743  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Weighted average common shares outstanding

     54,139     53,211     52,439  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Basic earnings per common share

   $ 4.02   $ 3.85   $ 3.24  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Diluted EPS:

                    

Earnings allocated to common shareholders (1)

   $ 217,848   $ 205,050   $ 169,759  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Weighted average common shares outstanding

     54,139     53,211     52,439  

Dilutive effect of equity awards

     501     264     410  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Weighted average diluted common shares outstanding

     54,640     53,475     52,849  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Diluted earnings per common share

   $ 3.99   $ 3.83   $ 3.21  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
(1)
Earnings allocated to common shareholders for basic and diluted EPS may differ under the two-class method as a result of adding common stock equivalents for options and warrants to dilutive shares outstanding, which alters the ratio used to allocate earnings to common shareholders and participating securities for the purposes of calculating diluted EPS.

        The average price of the Company's common stock for the period is used to determine the dilutive effect of outstanding stock options. Antidilutive stock options are not included in the calculation of basic or diluted EPS. There were 1.5 million average outstanding stock options that were antidilutive for 2013, compared to 2.8 million average outstanding stock options for 2012 and 2.9 million average outstanding stock options for 2011.