Earnings Per Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
(in thousands, except per share data)	2022		2021		2022		2021
Net income	$	18,829	$	8,065	$	47,010	$	23,351
Denominator for basic earnings per share – weighted-average number of common shares outstanding during the period		35,151		35,423		35,184		35,806
Incremental common shares attributable to exercise of dilutive options		13		32		15		43
Incremental common shares attributable to outstanding restricted stock units		184		211		405		438
Denominator for diluted earnings per share		35,348		35,666		35,604		36,287
Basic earnings per share	$	0.54	$	0.23	$	1.34	$	0.65
Diluted earnings per share	$	0.53	$	0.23	$	1.32	$	0.64

Restricted stock units totaling less than one thousand common shares for the three months ended September 30, 2022 were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive. There were no restricted stock units excluded from the computation of diluted earnings per share for the nine months ended September 30, 2022. Restricted stock units totaling five thousand and four thousand common shares for the three and nine months ended September 30, 2021 were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive.