Earnings Per Share

6 Months Ended

Jun. 30, 2022

Note 14 – Earnings Per Share

Basic earnings per share is computed using the weighted-average number of shares outstanding. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding stock equivalents. Stock equivalents include common stock issuable upon the exercise or vesting of stock options and other equity instruments and are computed using the treasury stock method. Under the treasury stock method, the exercise price of a share and the amount of compensation cost, if any, for future service that the Company has not yet recognized are assumed to be used to repurchase

shares in the current period. In periods when losses are reported, the weighted-average number of shares outstanding excludes stock equivalents because their inclusion would have an anti-dilutive effect.

The following table sets forth the calculation of basic and diluted earnings per share:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2022		2021		2022		2021
Net income	$	17,221	$	7,369	$	28,181	$	15,286
Denominator for basic earnings per share – weighted-average number of common shares outstanding during the period		35,157		35,753		35,201		36,000
Incremental common shares attributable to exercise of dilutive options		9		45		21		49
Incremental common shares attributable to outstanding restricted stock units		170		263		394		425
Denominator for diluted earnings per share		35,336		36,061		35,616		36,474
Basic earnings per share	$	0.49	$	0.21	$	0.80	$	0.42
Diluted earnings per share	$	0.49	$	0.20	$	0.79	$	0.42

Restricted stock units totaling $0.6 million and 2 thousand common shares for the three and six months ended June 30, 2022, respectively, were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive. Restricted stock units totaling 4 thousand shares for both the three and six months ended June 30, 2021 were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive.