NOTE J – EARNINGS PER SHARE

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


	Three Months Ended
	March 31
	2019		2018
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	4,888	$	9,954
Effect of unvested restricted stock awards		(9)		(30)
Adjusted net income	$	4,879	$	9,924
Denominator:
Weighted-average shares		25,570,415		25,642,871
Earnings per common share	$	0.19	$	0.39

Diluted
Numerator:
Net income	$	4,888	$	9,954
Effect of unvested restricted stock awards		(9)		(29)
Adjusted net income	$	4,879	$	9,925
Denominator:
Weighted-average shares		25,570,415		25,642,871
Effect of dilutive securities		941,934		953,505
Adjusted weighted-average shares and assumed conversions		26,512,349		26,596,376
Earnings per common share	$	0.18	$	0.37

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 the three-month periods ended March 31, 2019 and 2018, outstanding stock awards of 0.2 million and 0.1 million, respectively, were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing the earnings per share.