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
	2018		2017		2018		2017
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	40,776	$	14,788	$	51,963	$	23,158
Effect of unvested restricted stock awards		(98)		(44)		(128)		(106)
Adjusted net income	$	40,678	$	14,744	$	51,835	$	23,052
Denominator:
Weighted-average shares		25,697,509		25,671,535		25,670,435		25,699,306
Earnings per common share	$	1.58	$	0.57	$	2.02	$	0.90

Diluted
Numerator:
Net income	$	40,776	$	14,788	$	51,963	$	23,158
Effect of unvested restricted stock awards		(94)		(43)		(124)		(104)
Adjusted net income	$	40,682	$	14,745	$	51,839	$	23,054
Denominator:
Weighted-average shares		25,697,509		25,671,535		25,670,435		25,699,306
Effect of dilutive securities		1,098,150		721,824		1,037,824		674,076
Adjusted weighted-average shares and assumed conversions		26,795,659		26,393,359		26,708,259		26,373,382
Earnings per common share	$	1.52	$	0.56	$	1.94	$	0.87

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. For each of the three- and nine-month periods ended September 30, 2018 and 2017, outstanding stock awards of 0.1 million were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing the earnings per share.