EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2021

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE I: EARNINGS PER SHARE

The two class method is used in the calculations of basic and diluted earnings per share. Under the two class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared and participation rights in undistributed earnings. The Company has determined that all of its outstanding non-vested stock awards are participating securities as of March 31, 2021.

Basic earnings per share are computed based on the weighted-average of the common shares outstanding for the period. Diluted earnings per share are based on the weighted-average of the shares outstanding and the assumed exercise of stock options during the year. The dilutive effect of options is calculated using the treasury stock method of accounting. The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period. There were approximately 0.03 million weighted-average anti-dilutive stock options outstanding for the three months ended March 31, 2021, compared to approximately 0.2 million weighted-average anti-dilutive stock options outstanding for the three months ended March 31, 2020 that were not included in the computation below.

The following is a reconciliation of basic to diluted earnings per share for the three months ended March 31, 2021 and 2020:

	Three Months Ended
	March 31,
(000’s omitted, except per share data)	2021		2020
Net income	$	52,850	$	40,134
Income attributable to unvested stock-based compensation awards		(130)		(146)
Income available to common shareholders	$	52,720	$	39,988
Weighted-average common shares outstanding – basic		53,845		52,036
Basic earnings per share	$	0.98	$	0.77
Net income	$	52,850	$	40,134
Income attributable to unvested stock-based compensation awards		(130)		(146)
Income available to common shareholders	$	52,720	$	39,988
Weighted-average common shares outstanding – basic		53,845		52,036
Assumed exercise of stock options		438		420
Weighted-average common shares outstanding – diluted		54,283		52,456
Diluted earnings per share	$	0.97	$	0.76

Stock Repurchase Program

At its December 2019 meeting, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.60 million shares of the Company’s common stock in accordance with securities laws and regulations, through December 31, 2020. At its December 2020 meeting, the Board approved a similar program for 2021, authorizing the repurchase of up to 2.68 million shares of the Company’s common stock through December 31, 2021. Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities. The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company’s discretion. The Company did not repurchase any shares under the authorized plan during the first three months of 2021 or 2020.