Earnings Per Share

3 Months Ended

Mar. 31, 2021

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 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 March 31,
(in thousands, except per share data)	2021		2020
Net income	$	7,917	$	3,852
Denominator for basic earnings per share – weighted-average number of common shares outstanding during the period		36,250		36,790
Incremental common shares attributable to exercise of dilutive options		51		77
Incremental common shares attributable to outstanding restricted stock units		410		204
Denominator for diluted earnings per share		36,711		37,071
Basic earnings per share	$	0.22	$	0.10
Diluted earnings per share	$	0.22	$	0.10

Restricted stock units totaling 4 thousand shares and 9 thousand shares for the three months ended March 31, 2021 and 2020, respectively, were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive.