Note 2. Computation of Earnings per Common Share

Basic earnings per common share (“EPS”) is computed by dividing the net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the same method as basic EPS, however, the computation reflects the potential dilution that would occur if outstanding in-the-money stock options were exercised and converted into common stock.

Unvested stock-based compensation awards containing non-forfeitable rights to dividends paid on the Company’s common stock are considered participating securities, and therefore are included in the two-class method for calculating EPS. Under the two-class method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends on the common stock. The Company grants restricted stock to certain employees under its stock-based compensation plan. Recipients receive cash dividends during the vesting periods of these awards, including on the unvested portion of such awards. Since these dividends are non-forfeitable, the unvested awards are considered participating securities and therefore have earnings allocated to them.

The following table presents the Company’s computation of basic and diluted EPS for the periods indicated:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except share and per share data)	2017			2016			2017			2016
Net income available to common shareholders	$	102,261		$	125,299		$	313,266		$	381,668
Less: Dividends paid on and earnings allocated to participating securities		(823	)		(973	)		(2,512	)		(2,928	)

Earnings applicable to common stock	$	101,438		$	124,326		$	310,754		$	378,740

Weighted average common shares outstanding		487,274,303			485,352,998			487,025,614			485,087,197

Basic earnings per common share	$	0.21		$	0.26		$	0.64		$	0.78

Earnings applicable to common stock	$	101,438		$	124,326		$	310,754		$	378,740

Weighted average common shares outstanding		487,274,303			485,352,998			487,025,614			485,087,197
Potential dilutive common shares ⁽¹⁾		—			—			—			—

Total shares for diluted earnings per share computation		487,274,303			485,352,998			487,025,614			485,087,197

Diluted earnings per common share and common share equivalents	$	0.21		$	0.26		$	0.64		$	0.78

(1)	At September 30, 2017 and 2016, there were no stock options outstanding.