NOTE 10. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods.


		Three Months Ended
	March 31, 2018		March 31, 2017
Income Available to Common Shareholders:
Net Income	$	10,912,299	$	12,746,392
Weighted Average Shares Outstanding		5,530,864		5,602,137
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		31,036		21,277
Total Shares Applicable to Diluted Earnings Per Share		5,561,900		5,623,414

Per Share Information:
Basic
Net Income	$	1.97	$	2.28

Diluted
Net Income	$	1.96	$	2.27

The effect of 15,000 and 77,750 potentially dilutive securities was not included for the three months ended March 31, 2018 and 2017, respectively, as the effect would be anti-dilutive.

The Company intends to settle its 4.50% Convertible Senior Notes due 2020 (the “Convertible Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. Therefore, only the amount in excess of the par value of the Convertible Notes will be included in our calculation of diluted net income per share using the treasury stock method. As such, the Convertible Notes have no impact on diluted net income per share until the price of our common stock exceeds the current conversion price of $68.68. The average price of our common stock during the three months ended March 31, 2018 and 2017 did not exceed the conversion price which resulted in no additional diluted outstanding shares.