Basic EPS is computed by dividing earnings available to common shareholders by the weighted-average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Diluted earnings per share include dilutive stock options and stock units under the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2026 and 2025 (in thousands, except per share data):


	Three Months Ended March 31,
	2026		2025
Net income	$	251,419	$	52,992
Preferred dividends		9,320		9,320
Net income available to common shareholders	$	242,099	$	43,672
Shares for basic and diluted calculation:
Average shares used in basic computation		155,508		157,146
Dilutive effect of stock options and units (1)		7,936		8,807
Average shares used in diluted computation		163,444		165,953
Earnings per common share:
Basic	$	1.56	$	0.28
Diluted	$	1.48	$	0.26

(1)

Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Diluted earnings per share include units.

For the three months ended March 31, 2026 and 2025, the anti-dilutive effect from restricted stock units was immaterial.