NOTE I – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended				Nine Months Ended
	September 30				September 30
	2017		2016		2017		2016
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	14,788	$	12,940	$	23,158	$	17,068
Effect of unvested restricted stock awards		(44)		(89)		(106)		(132)
Adjusted net income	$	14,744	$	12,851	$	23,052	$	16,936
Denominator:
Weighted-average shares		25,671,535		25,724,550		25,699,306		25,779,166
Earnings per common share	$	0.57	$	0.50	$	0.90	$	0.66

Diluted
Numerator:
Net income	$	14,788	$	12,940	$	23,158	$	17,068
Effect of unvested restricted stock awards		(43)		(87)		(104)		(131)
Adjusted net income	$	14,745	$	12,853	$	23,054	$	16,937
Denominator:
Weighted-average shares		25,671,535		25,724,550		25,699,306		25,779,166
Effect of dilutive securities		721,824		486,974		674,076		484,566
Adjusted weighted-average shares and assumed conversions		26,393,359		26,211,524		26,373,382		26,263,732
Earnings per common share	$	0.56	$	0.49	$	0.87	$	0.64

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested RSUs that receive dividends, which are considered participating securities. Beginning with 2015 grants, the RSU agreements were modified to remove dividend rights; therefore, the RSUs granted subsequent to 2015 are not participating securities. Outstanding stock awards of less than 0.1 million for the three and nine months ended September 30, 2017 and 0.3 million and 0.4 million for the three and nine months ended September 30, 2016, respectively, were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing earnings per share.