Net Income Per Share

9 Months Ended

Sep. 30, 2018

NOTE 5 – 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 nine months ended September 30, 2018 and 2017:

	Three Months Ended				Nine Months Ended
(dollars and shares in thousands,	September 30,				September 30,
except per share data)	2018		2017		2018		2017
Basic Net Income Per Share
Net income	$	51,348	$	39,372	$	143,332	$	114,218
Weighted average common shares outstanding		151,930		135,120		151,844		135,040
Basic Net Income Per Share	$	0.34	$	0.30	$	0.95	$	0.85
Diluted Net Income Per Share
Net income	$	51,348	$	39,372	$	143,332	$	114,218
Weighted average common shares outstanding		151,930		135,120		151,844		135,040
Effect of dilutive securities:
Restricted stock		790		589		701		558
Stock options (1)		64		87		71		95
Weighted average shares outstanding		152,784		135,796		152,616		135,693
Diluted Net Income Per Share	$	0.34	$	0.29	$	0.94	$	0.84

(1)

Options to purchase 14 thousand shares and 55 thousand shares outstanding at September 30, 2018 and 2017, respectively, were not included in the computation of net income per diluted share for the three and nine months ended September 30, 2018 and 2017 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.