Note

– Net Income per Common Share

Basic net income per share is computed based on the weighted-average number of common shares outstanding. Diluted net income per share is computed based on the weighted-average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options, restricted stock units and restricted stock awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. Performance Stock Units are excluded from the calculation of dilutive potential common shares until the performance conditions have been satisfied.

The table below sets forth the computation of basic and diluted net income per share:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share and per share amounts)	2017		2016		2017		2016
Net income	$	13,220	$	11,982	$	37,506	$	33,335

Basic - weighted-average shares outstanding:		26,617,349		26,416,041		26,600,174		26,334,738
Effect of dilutive securities:
Employee stock options and other		184,685		193,837		116,379		204,340
Diluted - weighted-average shares outstanding:		26,802,034		26,609,878		26,716,553		26,539,078
Net income per share:
Basic	$	0.50	$	0.45	$	1.41	$	1.27
Diluted	$	0.49	$	0.45	$	1.40	$	1.26