10. Earnings Per Share

Basic earnings per share (“EPS”) is computed based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the exercises of stock options, vesting of restricted stock, vesting of performance share units, and conversion of preferred stock.

The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Numerator for EPS:
Net income	$	37,380		$	9,964		$	123,519		$	70,539
Less: Preferred stock dividends		(3	)		(3	)		(8	)		(8	)
Income available to common stockholders	$	37,377		$	9,961		$	123,511		$	70,531
Denominator for EPS:
Weighted average common shares outstanding		34,861			34,686			34,870			34,927
Plus: Assumed conversion of share-based compensation (1)		1,033			904			859			965
Assumed conversion of preferred stock		25			25			25			25
Weighted average diluted common shares outstanding		35,919			35,615			35,754			35,917
Basic earnings per common share	$	1.07		$	0.29		$	3.54		$	2.02
Diluted earnings per common share	$	1.04		$	0.28		$	3.45		$	1.96

(1)	Represents the dilutive effect of unvested restricted stock, unvested performance share units and unexercised stock options.