NOTE 4 – NET INCOME PER SHARE

Basic and diluted net income per share are calculated using the two-class method. Net income is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income is then divided by the weighted-average number of common shares and common share equivalents during the period.

The following table reconciles basic and diluted net income per share for the three and six months ended June 30, 2017 and 2016:


	Three Months Ended				Six Months Ended
(dollars and shares in thousands,	June 30,				June 30,
except per share data)	2017		2016		2017		2016
Basic Earnings Per Share
Net income	$	38,854	$	39,122	$	74,846	$	66,099
Weighted average common shares outstanding		135,085		127,508		134,999		120,753
Basic Net Income Per Share	$	0.28	$	0.31	$	0.55	$	0.55

Diluted Earnings Per Share
Net income	$	38,854	$	39,122	$	74,846	$	66,099
Weighted average common shares outstanding		135,085		127,508		134,999		120,753
Effect of dilutive securities:
Restricted stock (1)		523		425		543		480
Stock options (2)		89		40		99		40

Weighted average shares outstanding		135,697		127,973		135,641		121,273
Diluted Net Income Per Share	$	0.28	$	0.31	$	0.55	$	0.55

(1)

17 thousand shares and 0.1 million shares of restricted stock at June 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the three months ended June 30, 2017 and 2016, respectively, because the effect would be antidilutive. 17 thousand shares and 0.2 million shares of restricted stock at June 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the six months ended June 30, 2017 and 2016, respectively, because the effect would be antidilutive.

(2)

Options to purchase 0.1 million shares and 0.8 million shares outstanding at June 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the three months ended June 30, 2017 and 2016 because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive. Options to purchase 0.1 million shares and 0.8 million shares outstanding at June 30, 2017 and 2016, respectively, were not included in the computation of net income per diluted share for the six months ended June 30, 2017 and 2016, respectively, because the exercise price of these options was greater than the average market price of the common shares and, therefore, the effect would be antidilutive.