Earnings Per Common Share

9 Months Ended

Sep. 30, 2015

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options and restricted stock awards.

We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation.

The components of basic and diluted earnings per share were as follows for the three-month periods ended September 30, 2015 and 2014:



	Three Months Ended September 30,
(In Thousands Except Share Data)	2015				2014
	Basic		Diluted		Basic		Diluted
Net income	$	19,534	$	19,534	$	325	$	325
Weighted-average common shares outstanding	25,067,080		25,067,080		25,188,381		25,188,381
Add dilutive effect of restricted stock awards	—		125,135		—		114,313
Add dilutive effect of stock options	—		187,133		—		101,655
Weighted-average common shares	25,067,080		25,379,348		25,188,381		25,404,349
Earnings per common share	$	0.78	$	0.77	$	0.01	$	0.01
Awards excluded from diluted earnings per share calculation⁽¹⁾	—		260,035		—		868,020


(1)	Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive.

The components of basic and diluted earnings per share were as follows for the nine-month periods ended September 30, 2015 and 2014:



	Nine Months Ended September 30,
(In Thousands Except Share Data)	2015				2014
	Basic		Diluted		Basic		Diluted
Net income	$	58,231	$	58,231	$	24,341	$	24,341
Weighted-average common shares outstanding	25,027,382		25,027,382		25,295,842		25,295,842
Add dilutive effect of restricted stock awards	—		125,135		—		114,313
Add dilutive effect of stock options	—		19,364		—		126,414
Weighted-average common shares	25,027,382		25,171,881		25,295,842		25,536,569
Earnings per common share	$	2.33	$	2.31	$	0.96	$	0.95
Awards excluded from diluted earnings per share calculation⁽¹⁾	—		410,425		—		889,080


(1)	Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive.