EARNINGS PER SHARE

The following table sets forth the computation of the basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2018 (in thousands, except per share data):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2018			2017			2018
Numerator for basic and diluted earnings per share:
Net income	$	3,038		$	2,200		$	14,532		$	14,303
Less: Earnings allocated to unvested restricted stock	(10		)	(11		)	(52		)	(79		)
Income attributable to common stockholders	$	3,028		$	2,189		$	14,480		$	14,224

Denominator:
Denominator for basic earnings per common share - weighted average shares outstanding	16,476			19,060			16,575			17,701
Effect of dilutive securities:
Stock options	335			101			332			123
Convertible Notes	787			—			980			449
Denominator for diluted earnings per common share - weighted average shares outstanding	17,598			19,161			17,887			18,273

Basic earnings per common share:	$	0.18		$	0.11		$	0.87		$	0.80
Diluted earnings per common share:	$	0.17		$	0.11		$	0.81		$	0.78

The fully diluted weighted average shares outstanding for the nine months ended September 30, 2018 and the corresponding calculation of fully diluted earnings per share, include approximately 449,000 shares that would have been issued upon conversion of our Convertible Notes as a result of the application of the if-converted method prescribed by the FASB ASC 260, Earnings Per Share. For the three months ended September 30, 2018, there were no shares that would have been issued upon conversion under the if-converted method. There were approximately 787,000 and 980,000 shares for the three and nine months ended September 30, 2017 that would have been issued upon conversion under the if-converted method.

For the three and nine months ended September 30, 2018, approximately 1,065,000 and 1,041,000 stock options were excluded from the computation of diluted earnings per share because the inclusion of such stock options would result in an antidilutive effect. For the three and nine months ended September 30, 2017, approximately 455,000 and 320,000 stock options were excluded from the computation of diluted earnings per share.