Note 23 – Earnings per Share

Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from assumed issuance. Potential common shares that may be issued by the Company relate solely from outstanding stock options, and are determined using the treasury stock method. Earnings per share have been computed based on the following:


	Years ended December 31,
	2017		2016		2015
Net income (in thousands)	$	40,554	$	44,811	$	43,818

(number of shares in thousands)
Average number of common shares outstanding		22,912		22,814		22,750
Effect of dilutive stock options		338		273		248

Average number of common shares outstanding used to calculate diluted earnings per share		23,250		23,087		22,998

Based on an average of quarterly computations, there were 0, 13,825, and 20,625 options and restricted stock units excluded from the computation of annual diluted earnings per share for the years ended December 31, 2017, 2016 and 2015, respectively, because the effect of these options and restricted stock units were antidilutive.