EARNINGS AND DIVIDENDS PER COMMON SHARE

The weighted average number of common shares outstanding during the reporting period is used to calculate basic earnings per common share. Diluted earnings per common share assume the exercise of stock options and the conversion of our convertible debt using the treasury stock method, to the extent dilutive. If our average stock price for the period increases over the conversion price of our convertible debt, the conversion feature will be considered dilutive.

The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share amounts):



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Net income	$	40,979	$	39,092	$	117,251	$	121,566

BASIC:
Weighted average common shares outstanding	42,187,077		41,108,699		41,808,017		40,681,582

DILUTED:
Weighted average common shares outstanding	42,187,077		41,108,699		41,808,017		40,681,582
Stock options	98,269		74,769		66,917		69,210
Convertible subordinated debentures	149,153		264,795		57,802		186,545
Weighted average dilutive common shares outstanding	42,434,499		41,448,263		41,932,736		40,937,337

Net income per common share - basic	$	.97	$	.95	$	2.80	$	2.99
Net income per common share - diluted	$	.97	$	.94	$	2.80	$	2.97

Incremental shares excluded since anti-dilutive:
Net share effect of stock options with an exercise price in excess of the average market price for our common shares	615		403		31,616		760
Regular dividends declared per common share	$	1.00	$	.95	$	3.00	$	2.85