Note 9 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

9. Earnings Per Share

Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding during the period. The Company’s dilutive common share equivalents consist of stock options and restricted stock awards and units.

The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2016		2015
Net income	$	4,560	$	3,522

Weighted average common shares outstanding-basic		84,033		88,246
Plus: net effect of dilutive stock options		85		181
Plus: net effect of dilutive restricted stock awards and units		361		197
Weighted average common shares outstanding-diluted		84,479		88,624
Net income per common share-basic	$	0.05	$	0.04
Net income per common share-diluted	$	0.05	$	0.04

For the three months ended March 31, 2016 and 2015, 4,321,528 and 2,940,897 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.