Earnings per Common Share

The Company applies the two-class method of computing basic and diluted EPS. Under the two-class method, EPS is determined for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company issues restricted shares under share-based compensation plans and preferred shares which qualify as participating securities.

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated:



	Year Ended December 31,
	2013		2012		2011
	(in thousands except per share)
Basic EPS:
Net income	$	60,016	$	46,143	$	48,037
Less: Earnings allocated to participating securities
Preferred shares	95		—		—
Nonvested restricted shares	523		443		450
Earnings allocated to common shareholders	$	59,398	$	45,700	$	47,587
Weighted average common shares outstanding	47,993		39,260		39,103
Basic earnings per common share	$	1.24	$	1.16	$	1.22
Diluted EPS:
Earnings allocated to common shareholders (1)	$	59,407	$	45,700	$	47,588
Weighted average common shares outstanding	47,993		39,260		39,103
Dilutive effect of equity awards and warrants	1,058		3		77
Weighted average diluted common shares outstanding	49,051		39,263		39,180
Diluted earnings per common share	$	1.21	$	1.16	$	1.21
Potentially dilutive share options that were not included in the computation of diluted EPS because to do so would be anti-dilutive	64		9		53