Earnings Per Share

9 Months Ended

Sep. 30, 2023

Note 13 – 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)	2023		2022		2023		2022
Net income	$	20,412	$	18,829	$	46,763	$	47,010
Denominator for basic earnings per share – weighted-average number of common shares outstanding during the period		35,647		35,151		35,535		35,184
Incremental common shares attributable to exercise of dilutive options		4		13		5		15
Incremental common shares attributable to outstanding restricted stock units		225		184		339		405
Denominator for diluted earnings per share		35,876		35,348		35,879		35,604
Basic earnings per share	$	0.57	$	0.54	$	1.32	$	1.34
Diluted earnings per share	$	0.57	$	0.53	$	1.30	$	1.32

Restricted stock units totaling three thousand and 0.2 million common shares for the three and nine months ended September 30, 2023, respectively, were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive. 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 anti-dilutive shares for the nine months ended September 30, 2022.