Earnings Per Share

9 Months Ended

Sep. 30, 2018

13. Earnings Per Share

The Company computes earnings per share attributable to its shareholders using the treasury stock method. Under the treasury stock method, basic earnings per share are computed by dividing net income available to shareholders by the weighted average number of common shares outstanding during the period, and diluted earnings per share are computed by dividing net income available to shareholders by the weighted average number of common shares outstanding during the period plus all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive.

Net income available to common shareholders and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
(In thousands, except per share data)	2018		2017		2018		2017

Numerator:
Net income	$	7,957	$	5,145	$	20,436	$	7,575

Denominator:
Weighted average common shares outstanding		16,492		16,314		16,423		16,263
Weighted average dilutive securities		138		160		157		213
Weighted average common shares outstanding, diluted		16,630		16,474		16,580		16,476

Income per common share:
Basic	$	0.48	$	0.32	$	1.24	$	0.47
Diluted	$	0.48	$	0.31	$	1.23	$	0.46

For the three and nine months ended September 30, 2018 and 2017, certain common stock equivalents were excluded from the calculation of dilutive securities because their inclusion would either have been anti-dilutive or, for stock options, the exercise prices of those stock options were greater than the average market price of the Company’s common stock for the period. All of the Company’s non-participating unvested restricted shares were included in the computation of weighted average dilutive securities.

The following table summarizes the shares of common stock underlying the Company’s unvested stock options and performance awards that were excluded from the calculation of dilutive securities:

	Three months ended				Nine months ended
	September 30,				September 30,
(In thousands)	2018		2017		2018		2017

Restricted stock		1		44		1		44
Performance awards		2		21		68		127