Earnings Per Common Share

12 Months Ended

Dec. 31, 2019

NOTE 9. — EARNINGS PER COMMON SHARE

Basic and diluted earnings per common share gives effect, utilizing the two-class method, to the potential dilution from the issuance of shares of our common stock in settlement of RSUs which provide for non-forfeitable dividend equivalents equal to the dividends declared per common share. Basic and diluted earnings per common share is computed by dividing net earnings less dividend equivalents attributable to RSUs by the weighted average number of common shares outstanding during the year.

Diluted earnings per common share, also gives effect to the potential dilution from the exercise of stock options utilizing the treasury stock method. There were no options outstanding as of December 31, 2019, 2018 and 2017.

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per common share using the two-class method (in thousands except per share data):

	Year ended December 31,
(in thousands):	2019			2018			2017
Net earnings	$	49,723		$	47,706		$	47,186
Less dividend equivalents attributable to RSUs outstanding		(997	)		(751	)		(567	)
Net earnings attributable to common stockholders used in basic and diluted earnings per share calculation		48,726			46,955			46,619
Weighted average common shares outstanding:
Basic		41,072			40,171			36,897
Incremental shares from stock-based compensation		38			20			—
Diluted		41,110			40,191			36,897
Basic earnings per common share	$	1.19		$	1.17		$	1.26
Diluted earnings per common share	$	1.19		$	1.17		$	1.26