Note 3 – Earnings per Common Share

Basic earnings per common share amounts are computed by dividing income available to common shareholders, after deducting preferred stock dividends, by the average number of common shares outstanding. Diluted earnings per common share amounts assume the issuance of common stock for all potentially dilutive equivalent securities outstanding.

The following is a reconciliation of basic and diluted earnings per common share for the respective periods:



	Quarter Ended				Six Months Ended
	Fiscal September				Fiscal September
	2017		2016		2017		2016
	(Amounts in thousands,
	except per share data)
Numerator for earnings per common share calculation:
Net income	$	17,267	$	17,544	$	34,852	$	34,299
Preferred stock dividends		(92)		(129)		(184)		(258)
Income available to common shareholders	$	17,175	$	17,415	$	34,668	$	34,041
Denominator for earnings per common share calculation:
Weighted average common shares, basic		32,754		32,291		32,729		32,274
Effect of dilutive securities:
Preferred stock		510		760		510		760
Stock options		45		266		61		292
Weighted average number of common shares, diluted		33,309		33,317		33,300		33,326
Basic earnings per common share:	$	.52	$	.54	$	1.06	$	1.05
Diluted earnings per common share:	$	.52	$	.53	$	1.05	$	1.03

The computation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 1,066,000 and 1,063,000 stock options for the three and six months ended fiscal September 23, 2017, respectively, and 243,000 and 241,000 for the three and six months ended September 24, 2016, respectively. Such amounts were excluded as the exercise prices of these stock options were greater than the average market value of our common stock for those periods, resulting in an anti-dilutive effect on diluted earnings per common share.