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 and nine months ended September 30, 2026 and 2025 (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income	$	234,143	$	211,371	$	712,039	$	419,418
Preferred dividends		9,320		9,320		27,961		27,961
Net income available to common shareholders	$	224,823	$	202,051	$	684,078	$	391,457
Shares for basic and diluted calculation:
Average shares used in basic computation		151,956		154,679		153,889		155,603
Dilutive effect of stock options and units (1)		8,189		10,408		7,855		9,274
Average shares used in diluted computation		160,145		165,087		161,744		164,877
Earnings per common share:
Basic	$	1.48	$	1.31	$	4.45	$	2.52
Diluted	$	1.40	$	1.22	$	4.23	$	2.37

(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 and nine months ended September 30, 2026 and 2025, the anti-dilutive effect from restricted stock units was immaterial.