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				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(in thousands, except share and per share amounts)
Basic EPS:
Net income	$	19,701	$	16,577	$	52,826	$	45,582
Basic weighted average common shares		19,216,545		19,171,912		19,204,196		19,161,529
Basic earnings per common share	$	1.03	$	0.86	$	2.75	$	2.38
Diluted EPS:
Net income	$	19,701	$	16,577	$	52,826	$	45,582
Diluted weighted average common shares:
Weighted average common shares		19,216,545		19,171,912		19,204,196		19,161,529
Stock options and restricted stock		56,439		64,202		76,840		74,426
Diluted weighted average common shares		19,272,984		19,236,114		19,281,036		19,235,955
Diluted earnings per common share	$	1.02	$	0.86	$	2.74	$	2.37