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 September 30, 2017.

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 adjusted for the dilutive effect of restricted stock 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 (those where the average market price is greater than the exercise price) 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 0.2 million weighted-average anti-dilutive stock options outstanding for the three months ended September 30, 2017, and 0.1 million weighted-average anti-dilutive stock options outstanding for the nine months ended September 30, 2017, compared to no weighted-average anti-dilutive stock options outstanding for the three months ended September 30, 2016, and approximately 0.3 million weighted-average anti-dilutive stock options outstanding for the nine months ended September 30, 2016 that were not included in the computation below.

The following is a reconciliation of basic to diluted earnings per share for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
(000's omitted, except per share data)	2017			2016			2017			2016
Net income	$	35,243		$	27,160		$	78,691		$	77,420
Income attributable to unvested stock-based compensation awards		(164	)		(157	)		(387	)		(398	)
Income available to common shareholders	$	35,079		$	27,003		$	78,304		$	77,022

Weighted-average common shares outstanding – basic		50,703			44,184			48,189			44,023
Basic earnings per share	$	0.69		$	0.61		$	1.62		$	1.75

Net income	$	35,243		$	27,160		$	78,691		$	77,420
Income attributable to unvested stock-based compensation awards		(164	)		(157	)		(387	)		(398	)
Income available to common shareholders	$	35,079		$	27,003		$	78,304		$	77,022

Weighted-average common shares outstanding – basic		50,703			44,184			48,189			44,023
Assumed exercise of stock options		585			394			640			359
Weighted-average common shares outstanding – diluted		51,288			44,578			48,829			44,382
Diluted earnings per share	$	0.68		$	0.61		$	1.60		$	1.74

Stock Repurchase Program

At its December 2016 meeting, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.2 million shares of the Company’s common stock in accordance with securities laws and regulations, through December 31, 2017. 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 nine months of 2017.