Note 3. Earnings Per Share

The Company computes earnings per share (“EPS”) in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. The Company has no participating unvested common shares which contain nonforfeitable rights to dividends and applies the treasury stock method in computing basic and diluted earnings per share.

Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the period.

The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options were exercised or restricted stock becomes vested.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	(in thousands, except share and per share amounts)
Basic EPS:
Net income - basic	$	16,956	$	15,481	$	33,125	$	29,005
Basic weighted average common shares		19,208,601		19,162,049		19,197,925		19,156,250
Basic earnings per common share	$	0.88	$	0.81	$	1.73	$	1.51
Diluted EPS:
Net income - diluted	$	16,956	$	15,481	$	33,125	$	29,005
Diluted weighted average common shares:
Weighted average common shares		19,208,601		19,162,049		19,197,925		19,156,250
Stock options and restricted stock		58,134		65,911		77,958		71,747
Diluted weighted average common shares		19,266,735		19,227,960		19,275,883		19,227,997
Diluted earnings per common share	$	0.88	$	0.81	$	1.72	$	1.51