EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2017

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE I – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2017		2016		2017		2016
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	15,777	$	10,231	$	8,370	$	4,128
Effect of unvested restricted stock awards		(65)		(81)		(50)		(38)
Adjusted net income	$	15,712	$	10,150	$	8,320	$	4,090
Denominator:
Weighted-average shares		25,767,791		25,791,026		25,726,363		25,806,774
Earnings per common share	$	0.61	$	0.39	$	0.32	$	0.16
Diluted
Numerator:
Net income	$	15,777	$	10,231	$	8,370	$	4,128
Effect of unvested restricted stock awards		(64)		(80)		(50)		(38)
Adjusted net income	$	15,713	$	10,151	$	8,320	$	4,090
Denominator:
Weighted-average shares		25,767,791		25,791,026		25,726,363		25,806,774
Effect of dilutive securities		523,850		455,842		652,073		488,909
Adjusted weighted-average shares and assumed conversions		26,291,641		26,246,868		26,378,436		26,295,683
Earnings per common share	$	0.60	$	0.39	$	0.32	$	0.16

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 RSUs that receive dividends, which are considered participating securities. Beginning with 2015 grants, the RSU agreements were modified to remove dividend rights; therefore, the RSUs granted subsequent to 2015 are not participating securities. Outstanding stock awards of less than 0.1 million for the three and six months ended June 30, 2017 and 0.4 million for the 2016 periods, were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing earnings per share.