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Net Income Per Common Share
 9 Months Ended
Sep. 30, 2022
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 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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2022

    

2021

    

2022

    

2021

Denominator:

 

  

 

  

 

  

 

  

Basic weighted average shares outstanding

 

31,302

 

44,212

 

32,623

 

45,272

Effect of dilutive stock options and restricted stock

 

85

 

86

 

86

 

132

Diluted weighted average shares outstanding

 

31,387

 

44,298

 

32,709

 

45,404

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Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock in accordance with the treasury stock method. For the three-month periods ended September 30, 2022 and 2021, approximately 25 and 73, respectively, and for the nine-month periods ended September 30, 2022 and 2021,

approximately 77 and 25, 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.