EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE M – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:

	2021		2020		2019
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	213,521	$	71,100	$	39,985
Effect of unvested restricted stock awards		—		—		(22)
Adjusted net income	$	213,521	$	71,100	$	39,963
Denominator:
Weighted-average shares		25,471,939		25,410,232		25,535,529
Earnings per common share	$	8.38	$	2.80	$	1.56
Diluted
Numerator:
Net income	$	213,521	$	71,100	$	39,985
Effect of unvested restricted stock awards		—		—		(21)
Adjusted net income	$	213,521	$	71,100	$	39,964
Denominator:
Weighted-average shares		25,471,939		25,410,232		25,535,529
Effect of dilutive securities		1,300,187		1,012,291		914,526
Adjusted weighted-average shares and assumed conversions		26,772,126		26,422,523		26,450,055
Earnings per common share	$	7.98	$	2.69	$	1.51

The Company used the two-class method of calculating earnings per share in 2019. Under the two-class method, 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 and, therefore, the RSUs granted in 2021, 2020, and 2019 are not participating securities. During 2019, the remaining unvested RSUs receiving dividends became vested; therefore, the Company began using the treasury stock method for calculating earnings per share in 2020.

For the year ended December 31, 2019 outstanding stock awards of 0.2 million were not included in the diluted earnings per share calculations because their inclusion would have the effect of increasing the earnings per share.