Net Income Per Common Share

(In Thousands, Except Share Data)

Basic net income per common share is calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per common share reflects the pro forma dilution of shares outstanding, assuming outstanding stock options were exercised into common shares and nonvested restricted stock awards, whose vesting is subject to future service requirements, were outstanding common shares as of the awards’ respective grant dates, calculated in accordance with the treasury method.

Basic and diluted net income per common share calculations are as follows for the periods presented:



	Year Ended December 31,
	2017		2016		2015
Basic
Net income applicable to common stock	$	92,188	$	90,930	$	68,014
Average common shares outstanding	46,874,502		41,737,636		35,971,877
Net income per common share—basic	$	1.97	$	2.18	$	1.89
Diluted
Net income applicable to common stock	$	92,188	$	90,930	$	68,014
Average common shares outstanding	46,874,502		41,737,636		35,971,877
Effect of dilutive stock-based compensation	127,014		251,819		255,562
Average common shares outstanding—diluted	47,001,516		41,989,455		36,227,439
Net income per common share—diluted	$	1.96	$	2.17	$	1.88

Outstanding stock-based compensation awards that could potentially dilute basic net income per common share in the future that were not included in the computation of diluted net income per common share due to their anti-dilutive effect were as follows for the periods presented:



	Year Ended
	December 31,
	2017	2016	2015
Number of shares	77,545	—	—
Range of exercise prices (for stock option awards)	—	—	—