7. EARNINGS PER COMMON SHARE

Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if options granted under various share-based compensation plans were exercised resulting in the issuance of common shares that would participate in the earnings of the entity.

Net income (loss) per common share has been computed as per below, based upon weighted average common basic and dilutive shares outstanding.


		Three Months Ended
		March 31,
(Dollars in thousands, except per share amounts)		2019			2018
Net income (loss) per share:
Numerator
Net income (loss)		$	348,900		$	210,318
Less: dividends declared-common shares and nonvested common shares			(57,137	)		(53,240	)
Undistributed earnings			291,763			157,078
Percentage allocated to common shareholders⁽¹⁾			99.0	%		98.9	%
			288,706			155,410
Add: dividends declared-common shareholders			56,531			52,697
Numerator for basic and diluted earnings per common share		$	345,237		$	208,107

Denominator
Denominator for basic earnings per weighted-average common shares			40,304			40,469
Effect of dilutive securities:
Options			141			220
Denominator for diluted earnings per adjusted weighted-average common shares			40,445			40,689

Per common share net income (loss)
Basic		$	8.57		$	5.14
Diluted		$	8.54		$	5.11

⁽¹⁾	Basic weighted-average common shares outstanding		40,304			40,469
	Basic weighted-average common shares outstanding and nonvested common shares expected to vest		40,731			40,903
	Percentage allocated to common shareholders		99.0	%		98.9	%

(Some amounts may not reconcile due to rounding.)

There were no anti-diluted options outstanding for the three months ended March 31, 2019 and 2018.

All outstanding options expire on or between February 24, 2020 and September 19, 2022.