NOTE I – EARNINGS PER SHARE

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


	Three Months Ended
	March 31
	2018		2017
	(in thousands, except share and per share data)
Basic
Numerator:
Net income (loss)	$	9,954	$	(7,407)
Effect of unvested restricted stock awards		(30)		(17)
Adjusted net income (loss)	$	9,924	$	(7,424)
Denominator:
Weighted-average shares		25,642,871		25,684,475
Earnings (loss) per common share	$	0.39	$	(0.29)

Diluted
Numerator:
Net income (loss)	$	9,954	$	(7,407)
Effect of unvested restricted stock awards		(29)		(17)
Adjusted net income (loss)	$	9,925	$	(7,424)
Denominator:
Weighted-average shares		25,642,871		25,684,475
Effect of dilutive securities		953,505		—
Adjusted weighted-average shares and assumed conversions		26,596,376		25,684,475
Earnings (loss) per common share	$	0.37	$	(0.29)

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 0.1 million for the three months ended March 31, 2018 were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing earnings per share. For the three months ended March 31, 2017, outstanding stock awards of 0.8 million were not included in the diluted earnings per share calculation because their inclusion would have the effect of decreasing the loss per share.