Earnings Per Share

9 Months Ended

Sep. 30, 2022

The Company computes earnings per share using the treasury stock method. Under the treasury stock method, basic earnings per share are computed by dividing net income available to stockholders 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 stockholders 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 and the weighted average number of common shares used to compute basic and diluted earnings per share were as follows:


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2022		2021		2022		2021
Numerator:
Net income	$	18,436	$	23,171	$	58,808	$	64,318

Denominator:
Weighted average common shares outstanding	16,659		16,868		16,822		16,828
Weighted average dilutive securities	194		299		222		304
Weighted average common shares outstanding, diluted	16,853		17,167		17,044		17,132

Income per common share:
Basic	$	1.11	$	1.37	$	3.50	$	3.82
Diluted	$	1.09	$	1.35	$	3.45	$	3.75

For the three and nine months ended September 30, 2022 and 2021, 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 unvested time-vested stock awards were included in the computation of weighted average dilutive securities.

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


	Three months ended September 30,		Nine months ended September 30,
(in thousands)	2022	2021	2022	2021

Performance awards	13	—	13	17

Share Repurchases

On May 4, 2022, the Company announced that its Board of Directors had authorized a new $75.0 million share repurchase program (the "Repurchase Program"). The Repurchase Program was authorized by the Board of Directors on May 3, 2022 and became effective on May 5, 2022. The Repurchase Program will expire on November 7, 2022, or when the authorized funds are exhausted, whichever is earlier.

During the nine months ended September 30, 2022, the Company repurchased 398,152 shares of its common stock under the Repurchase Program at a weighted-average price of $83.81 per share. Additionally, during the nine months ended September 30, 2022 the Company repurchased 68,675 shares of stock, for approximately $6.8 million, from its employees to satisfy tax obligations on shares vested under the LTIP. All of the shares repurchased were retired. The shares repurchased resulted in no change to authorized shares and an increase to unissued shares. As of September 30, 2022, the Company had $41.6 million of remaining availability to repurchase shares of the Company’s common stock under the Repurchase Program.