Earnings Per Share

9 Months Ended

Sep. 30, 2024

Note 13 – Earnings Per Share

Basic earnings per share is computed using the weighted-average number of common shares outstanding. Diluted earnings per share is computed using the weighted-average number of common shares outstanding adjusted for the incremental shares attributed to outstanding stock equivalents. Stock equivalents include common shares issuable upon the exercise 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.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)	2024		2023		2024		2023
Net income	$	15,374	$	20,412	$	44,904	$	46,763

Denominator for basic earnings per share		36,051		35,647		35,970		35,535
Incremental common shares attributable to outstanding restricted stock units		578		4		496		5
Incremental common shares attributable to exercise of dilutive options		—		225		3		339
Denominator for diluted earnings per share		36,629		35,876		36,469		35,879

Earnings per share:
Basic	$	0.43	$	0.57	$	1.25	$	1.32
Diluted	$	0.42	$	0.57	$	1.23	$	1.30

Restricted stock units totaling less than 0.1 million common shares for both the three and nine months ended September 30, 2024 were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. Restricted stock units totaling less than 0.1 million and 0.2 million common shares for the three and nine months ended September 30, 2023, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive.