9.	EARNINGS PER SHARE

Basic earnings per share (“EPS”) is based on the weighted average number of shares of common stock outstanding for the period. Diluted EPS is computed in a similar manner to basic EPS after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested.

In accordance with ASC Topic 260 “Earnings Per Share”, the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The outstanding restricted shares of stock that were issued on July 8, 2015, are considered participating securities.

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted net earnings per share (dollars in thousands, except per share amounts):

	Year Ended December 31,
	2017			2016			2015
Numerator:
Net income	$	66,807		$	43,840		$	20,945
Less: income allocable to participating securities		(171	)		(333	)		(270	)
Income allocable to common shares	$	66,636		$	43,507		$	20,675
Add back: undistributed earnings allocable to participating securities		171			333			270
Less: undistributed earnings reallocated to participating securities		(168	)		(333	)		(264	)
Numerator for diluted earnings per share	$	66,639		$	43,507		$	20,681
Denominator:
Weighted average common shares outstanding		50,315,455			50,315,455			50,315,455
Weighted average common shares repurchased		(1,526,930	)		(286,699	)		—
Adjustment for vested restricted stock		9,050,630			7,521,448			6,179,715
Shares for calculating basic earnings per share		57,839,155			57,550,204			56,495,170
Dilutive effect of unvested restricted stock		950,864			1,417,895			1,424,530
Shares for calculating diluted earnings per share		58,790,019			58,968,099			57,919,700
Earnings per share:
Basic	$	1.15		$	0.76		$	0.37
Diluted	$	1.13		$	0.74		$	0.36