EARNINGS AND DIVIDENDS PER COMMON SHARE

The weighted average number of common shares outstanding during the reporting period is used to calculate basic earnings per common share. Diluted earnings per common share assume the exercise of stock options and the conversion of our convertible debt using the treasury stock method, to the extent dilutive. If our average stock price for the period increases over the conversion price of our convertible debt, the conversion feature will be considered dilutive.

The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share amounts):



	Three Months Ended
	March 31,
	2018		2017
Net income	$	38,432	$	44,230

BASIC:
Weighted average common shares outstanding	41,532,154		39,953,804

DILUTED:
Weighted average common shares outstanding	41,532,154		39,953,804
Stock options	44,722		56,910
Convertible subordinated debentures	—		98,048
Average dilutive common shares outstanding	41,576,876		40,108,762

Net income per common share - basic	$	.93	$	1.11
Net income per common share - diluted	$	.92	$	1.10

Incremental shares excluded since anti-dilutive:
Net share effect of stock options and convertible debt with an exercise or conversion price in excess of the average market price for our common shares	118,639		19,851
Regular dividends declared per common share	$	1.00	$	.95