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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Net income	$	37,839	$	38,245	$	76,271	$	82,475

BASIC:
Weighted average common shares outstanding	41,704,819		40,982,244		41,618,487		40,468,024

DILUTED:
Weighted average common shares outstanding	41,704,819		40,982,244		41,618,487		40,468,024
Stock options	57,759		66,137		51,241		63,901
Convertible subordinated debentures	24,251		196,792		12,126		147,420
Weighted average dilutive common shares outstanding	41,786,829		41,245,173		41,681,854		40,679,345

Net income per common share - basic	$	.91	$	.93	$	1.83	$	2.04
Net income per common share - diluted	$	.91	$	.93	$	1.83	$	2.03

Incremental shares excluded since anti-dilutive:
Net share effect of stock options with an exercise price in excess of the average market price for our common shares	33,554		11,015		50,952		9,736
Regular dividends declared per common share	$	1.00	$	.95	$	2.00	$	1.90