EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2016

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:


	2016		2015		2014
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	18,652	$	44,854	$	46,177
Effect of unvested restricted stock awards		(138)		(450)		(2,300)
Adjusted net income	$	18,514	$	44,404	$	43,877
Denominator:
Weighted-average shares		25,751,544		26,013,716		25,993,255
Earnings per common share	$	0.72	$	1.71	$	1.69

Diluted
Numerator:
Net income	$	18,652	$	44,854	$	46,177
Effect of unvested restricted stock awards		(137)		(443)		(2,300)
Adjusted net income	$	18,515	$	44,411	$	43,877
Denominator:
Weighted-average shares		25,751,544		26,013,716		25,993,255
Effect of dilutive securities		505,026		516,411		357
Adjusted weighted-average shares and assumed conversions		26,256,570		26,530,127		25,993,612
Earnings per common share	$	0.71	$	1.67	$	1.69

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 2016 and 2015 are not participating securities. For the year ended December 31, 2016, 2015, and 2014 outstanding stock awards of 0.4 million, 0.2 million, and 0.7 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.