14. Earnings Per Share

Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the weighted average number of common shares, using the two‑class method. As the Company has granted RSUs that both participate in dividend equivalents and do not participate in dividend equivalents, the Company has calculated earnings per share pursuant to the two‑class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Diluted net earnings per share is calculated by dividing net income attributable to common stockholders as adjusted for the effect of dilutive non-participating securities, by the weighted average number of common stock and dilutive common stock outstanding during the period. Potential common shares in the diluted net earnings per share computation are excluded to the extent that they would be anti-dilutive.



		2018		2017		2016
Basic earnings per common share
Net income	$	43,905	$	55,324	$	39,009
Less income allocated to participating securities		584		715		540
Net income allocated to common shareholders	$	43,321	$	54,609	$	38,469
Weighted average common shares outstanding		22,681,888		22,576,381		22,480,679
	$	1.91	$	2.42	$	1.71
Earnings per common share assuming dilution
Net income	$	43,905	$	55,324	$	39,009
Less income allocated to participating securities		584		715		540
Net income allocated to common shareholders	$	43,321	$	54,609	$	38,469
Weighted average common shares outstanding		22,681,888		22,576,381		22,480,679
Incremental shares applicable to stock based compensation		22,968		11,267		-
Weighted average common shares assuming dilution		22,704,856		22,587,648		22,480,679
	$	1.89	$	2.40	$	1.70