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,
	2018		2017		2016
Basic
Net income applicable to common stock	$	146,920	$	92,188	$	90,930
Average common shares outstanding	52,492,104		46,874,502		41,737,636
Net income per common share—basic	$	2.80	$	1.97	$	2.18
Diluted
Net income applicable to common stock	$	146,920	$	92,188	$	90,930
Average common shares outstanding	52,492,104		46,874,502		41,737,636
Effect of dilutive stock-based compensation	134,746		127,014		251,819
Average common shares outstanding—diluted	52,626,850		47,001,516		41,989,455
Net income per common share—diluted	$	2.79	$	1.96	$	2.17

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,
	2018	2017	2016
Number of shares	73,257	77,545	—
Range of exercise prices (for stock option awards)	—	—	—