Earnings Per Common Share

9 Months Ended

Sep. 30, 2019

Basic Earnings Per Common Share is calculated by dividing net income, less income allocated to participating securities, by the weighted average number of common shares outstanding during the period, excluding unvested shares of restricted stock. For the Company, participating securities include unvested shares of restricted stock. Diluted Earnings Per Common Share is computed by assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. For the periods presented, the Company’s potentially dilutive common stock issuances related to unvested shares of restricted stock and stock option grants under the Company’s equity-based plans, as well as contingently issuable shares.

In computing Diluted Earnings Per Common Share, adjustments are made to the computation of Basic Earnings Per Common shares, as follows. As it relates to unvested shares of restricted stock, the number of shares added to the denominator is equal to the total number of weighted average unvested shares outstanding. As it relates to stock options, it is assumed that all dilutive stock options are exercised during the reporting period at their respective exercise prices, with the proceeds from the exercises used by the Company to buy back stock in the open market at the average market price in effect during the reporting period. The difference between the number of shares assumed to be exercised and the number of shares bought back is included in the calculation of dilutive securities. As it relates to contingently issuable shares, the number of shares that are included in the calculation of

dilutive securities is based on the weighted average number of shares that are issuable if the end of the reporting period were the end of the contingency period.

If any of the potentially dilutive common stock issuances have an anti-dilutive effect, the potentially dilutive common stock issuance is disregarded.

The following is a reconciliation of the numerators and denominators used in computing Basic and Diluted Earnings Per Common Share:



	For the Three Months Ended September 30,
	2019						2018
($ in thousands except per share amounts)	Per Share Amount			Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	25,019					$	21,991
Less: income allocated to participating securities	(119		)				—
Basic EPS per common share	$	24,900		29,542,001	$	0.84	$	21,991	29,530,203	$	0.74

Diluted EPS:
Net income	$	25,019		29,542,001			$	21,991	29,530,203
Effect of Dilutive Securities	—			142,104			—		90,927
Diluted EPS per common share	$	25,019		29,684,105	$	0.84	$	21,991	29,621,130	$	0.74



	For the Nine Months Ended September
	2019						2018
($ in thousands except per share amounts)	Per Share Amount			Shares (Denominator)	Per Share Amount		Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic EPS:
Net income	$	71,163					$	65,394
Less: income allocated to participating securities	(329		)				—
Basic EPS per common share	$	70,834		29,585,383	$	2.39	$	65,394	29,536,273	$	2.21

Diluted EPS:
Net income	$	71,163		29,585,383			$	65,394	29,536,273
Effect of Dilutive Securities	—			174,076			—		102,853
Diluted EPS per common share	$	71,163		29,759,459	$	2.39	$	65,394	29,639,126	$	2.21

For both the three and nine months ended September 30, 2019 and 2018, there were no options that were antidilutive.