EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2015

NOTE L – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:


	2015		2014		2013
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	44,854	$	46,177	$	15,811
Effect of unvested restricted stock awards		(450)		(2,300)		(720)
Adjusted net income	$	44,404	$	43,877	$	15,091
Denominator:
Weighted-average shares		26,013,716		25,993,255		25,714,205
Earnings per common share	$	1.71	$	1.69	$	0.59
Diluted
Numerator:
Net income	$	44,854	$	46,177	$	15,811
Effect of unvested restricted stock awards		(443)		(2,300)		(720)
Adjusted net income	$	44,411	$	43,877	$	15,091
Denominator:
Weighted-average shares		26,013,716		25,993,255		25,714,205
Effect of dilutive securities		516,411		357		—
Adjusted weighted-average shares and assumed conversions		26,530,127		25,993,612		25,714,205
Earnings per common share	$	1.67	$	1.69	$	0.59

Under the two‑class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock units that receive dividends, which are considered participating securities. Beginning with 2015 grants, the restricted stock unit agreements were modified to remove dividend rights and, therefore, the restricted stock units granted in 2015 are not participating securities. For the year ended December 31, 2015, 2014, and 2013 outstanding stock awards of 0.2 million, 0.7 million, and 0.8 million, respectively, were not included in the diluted earnings per share calculations because their inclusion would have the effect of increasing the earnings per share.