EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE L – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:

	2020		2019		2018
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	71,100	$	39,985	$	67,262
Effect of unvested restricted stock awards		—		(22)		(150)
Adjusted net income	$	71,100	$	39,963	$	67,112
Denominator:
Weighted-average shares		25,410,232		25,535,529		25,679,736
Earnings per common share	$	2.80	$	1.56	$	2.61
Diluted
Numerator:
Net income	$	71,100	$	39,985	$	67,262
Effect of unvested restricted stock awards		—		(21)		(145)
Adjusted net income	$	71,100	$	39,964	$	67,117
Denominator:
Weighted-average shares		25,410,232		25,535,529		25,679,736
Effect of dilutive securities		1,012,291		914,526		1,019,095
Adjusted weighted-average shares and assumed conversions		26,422,523		26,450,055		26,698,831
Earnings per common share	$	2.69	$	1.51	$	2.51

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 and, therefore, the RSUs granted in 2020, 2019, and 2018 are not participating securities.

During 2019, the remaining unvested RSUs receiving dividends became vested; therefore, in 2020 the Company began using the treasury stock method for calculating earnings per share.

For the year ended December 31, 2019 and 2018 outstanding stock awards of 0.2 million and 0.1 million, respectively, were not included in the diluted earnings per share calculations because their inclusion would have the effect of increasing the earnings per share.