EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

NOTE I – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended				Six Months Ended
	June 30				June 30
	2016		2015		2016		2015
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	10,231	$	19,967	$	4,128	$	20,712
Effect of unvested restricted stock awards		(81)		(207)		(38)		(231)
Adjusted net income	$	10,150	$	19,760	$	4,090	$	20,481
Denominator:
Weighted-average shares		25,791,026		26,021,874		25,806,774		26,036,375
Earnings per common share	$	0.39	$	0.76	$	0.16	$	0.79

Diluted
Numerator:
Net income	$	10,231	$	19,967	$	4,128	$	20,712
Effect of unvested restricted stock awards		(80)		(203)		(38)		(227)
Adjusted net income	$	10,151	$	19,764	$	4,090	$	20,485
Denominator:
Weighted-average shares		25,791,026		26,021,874		25,806,774		26,036,375
Effect of dilutive securities		455,842		571,577		488,909		556,240
Adjusted weighted-average shares and assumed conversions		26,246,868		26,593,451		26,295,683		26,592,615
Earnings per common share	$	0.39	$	0.74	$	0.16	$	0.77

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested RSUs that receive dividends, which are considered participating securities. Beginning with 2015 grants, the RSU agreements were modified to remove dividend rights; therefore, the RSUs granted in 2015 and 2016 are not participating securities. For the three and six months ended June 30, 2016 and 2015, outstanding stock awards of 0.4 million for the 2016 periods and 0.2 million for the 2015 periods were not included in the diluted earnings per share calculation because their inclusion would have the effect of increasing earnings per share.