EARNINGS AND DIVIDENDS PER COMMON SHARE

The weighted average number of common shares outstanding during the reporting period is used to calculate basic earnings per common share. Diluted earnings per common share assume the exercise of stock options and the conversion of our convertible debt using the treasury stock method, to the extent dilutive. If our average stock price for the period increases over the conversion price of our convertible debt, the conversion feature will be considered dilutive.

The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share amounts):



	Three Months Ended
	March 31,
	2019		2018
Net income	$	35,679	$	38,432

BASIC:
Weighted average common shares outstanding	42,825,824		41,532,154

DILUTED:
Weighted average common shares outstanding	42,825,824		41,532,154
Stock options	75,695		44,722
Convertible subordinated debentures	223,513		—
Weighted average dilutive common shares outstanding	43,125,032		41,576,876

Net income per common share - basic	$	.83	$	.93
Net income per common share - diluted	$	.83	$	.92

Incremental anti-dilutive shares excluded:
Net share effect of stock options with an exercise price in excess of the average market price for our common shares	17,415		118,639

Regular dividends declared per common share	$	1.05	$	1.00