Note 2 - Earnings Per Common Share

9 Months Ended

Sep. 30, 2016

(2) Earnings per Common Share

Basic and diluted earnings per common share were computed as follows:

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
(In thousands, except per share amounts)	2016		2015		2016		2015
Numerator:
Net income	$	8,437	$	8,410	$	25,161	$	26,955
Denominator:
Basic earnings per common share - weighted-average shares		32,531		33,622		32,476		33,555
Effect of dilutive stock options		184		224		177		261
Diluted earnings per common share - weighted-average shares and assumed conversions		32,715		33,846		32,653		33,816

Basic earnings per common share	$	0.26	$	0.25	$	0.77	$	0.80
Diluted earnings per common share	$	0.26	$	0.25	$	0.77	$	0.80

Options totaling 248,000 and 344,000 equivalent shares for the three-month and nine-month periods ended September 30, 2016, and 324,600 and 311,200 equivalent shares for the three-month and nine-month periods ended September 30, 2015, respectively, were outstanding but were not included in the calculation of diluted earnings per share because including the options in the denominator would be antidilutive, or decrease the number of weighted-average shares, due to their exercise prices exceeding the average market price of the common shares, or because inclusion of average unrecognized compensation expense in the calculation would cause the options to be antidilutive.

Unvested performance unit awards totaling 42,543 equivalent shares for each of the three-month and nine-month periods ended September 30, 2016, and 67,595 equivalent shares for each of the three-month and nine-month periods ended September 30, 2015, were considered outstanding but were not included in the calculation of diluted earnings per share because inclusion of average unrecognized compensation expense in the calculation would cause the performance units to be antidilutive.