Net Income Per Common Share

6 Months Ended

Jun. 30, 2022

Net Income Per Common Share

Net Income Per Common Share

4. Net Income Per Common Share

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2022	2021	2022	2021
Denominator:
Basic weighted average shares outstanding	31,800	45,490	33,295	45,810
Effect of dilutive stock options and restricted stock	77	92	86	154
Diluted weighted average shares outstanding	31,877	45,582	33,381	45,964

Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock in accordance with the treasury stock method. For the three-month periods ended June 30, 2022 and 2021, approximately nil and 1, respectively, and for the six-month periods ended June 30, 2022 and 2021, approximately 103 and 2,

respectively, of the Company’s restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These restricted stock awards could be dilutive in the future.