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Net Income Per Common Share
 9 Months Ended
Sep. 30, 2021
Net Income Per Common Share  
Net Income Per Common Share

4. Net Income Per Common Share

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of stock options and restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share.

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Three Months Ended

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Nine Months Ended

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September 30, 

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September 30, 

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2021

    

2020

    

2021

    

2020

Denominator:

 

 

  

 

  

 

  

 

  

Basic weighted average shares outstanding

 

 

44,212

 

46,808

 

45,272

 

47,051

Effect of dilutive stock options and restricted stock

 

 

86

 

287

 

132

 

285

Diluted weighted average shares outstanding

 

 

44,298

 

47,095

 

45,404

 

47,336

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Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock and shares that would be issued upon the assumed exercise of stock options in accordance with the treasury stock method.

For the three month periods ended September 30, 2021 and 2020, approximately 73 and 79, respectively, and for the nine month periods ended September 30, 2021 and 2020, approximately 25 and 148, respectively, of the Company’s restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These restricted stock awards could be dilutive in the future.