EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE J – EARNINGS PER SHARE

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

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2019		2018		2019		2018
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	16,270	$	40,776	$	45,534	$	51,963
Effect of unvested restricted stock awards		(2)		(98)		(28)		(128)
Adjusted net income	$	16,268	$	40,678	$	45,506	$	51,835
Denominator:
Weighted-average shares		25,527,982		25,697,509		25,550,365		25,670,435
Earnings per common share	$	0.64	$	1.58	$	1.78	$	2.02
Diluted
Numerator:
Net income	$	16,270	$	40,776	$	45,534	$	51,963
Effect of unvested restricted stock awards		(2)		(94)		(28)		(124)
Adjusted net income	$	16,268	$	40,682	$	45,506	$	51,839
Denominator:
Weighted-average shares		25,527,982		25,697,509		25,550,365		25,670,435
Effect of dilutive securities		888,613		1,098,150		911,303		1,037,824
Adjusted weighted-average shares and assumed conversions		26,416,595		26,795,659		26,461,668		26,708,259
Earnings per common share	$	0.62	$	1.52	$	1.72	$	1.94

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 nine-month periods ended September 30, 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.