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
	2018		2017		2018		2017
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	1,233	$	15,777	$	11,187	$	8,370
Effect of unvested restricted stock awards		(4)		(65)		(31)		(50)
Adjusted net income	$	1,229	$	15,712	$	11,156	$	8,320
Denominator:
Weighted-average shares		25,670,325		25,767,791		25,656,674		25,726,363
Earnings per common share	$	0.05	$	0.61	$	0.43	$	0.32

Diluted
Numerator:
Net income	$	1,233	$	15,777	$	11,187	$	8,370
Effect of unvested restricted stock awards		(4)		(64)		(30)		(50)
Adjusted net income	$	1,229	$	15,713	$	11,157	$	8,320
Denominator:
Weighted-average shares		25,670,325		25,767,791		25,656,674		25,726,363
Effect of dilutive securities		1,029,224		523,850		996,608		652,073
Adjusted weighted-average shares and assumed conversions		26,699,549		26,291,641		26,653,282		26,378,436
Earnings per common share	$	0.05	$	0.60	$	0.42	$	0.32

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. For each of the three- and six-month periods ended June 30, 2017 and 2018, outstanding stock awards of 0.1 million were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing the earnings per share.