NOTE L – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:




	2017		2016		2015
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	59,726	$	18,652	$	44,854
Effect of unvested restricted stock awards		(238)		(138)		(450)
Adjusted net income	$	59,488	$	18,514	$	44,404
Denominator:
Weighted-average shares		25,683,745		25,751,544		26,013,716
Earnings per common share	$	2.32	$	0.72	$	1.71

Diluted
Numerator:
Net income	$	59,726	$	18,652	$	44,854
Effect of unvested restricted stock awards		(233)		(137)		(443)
Adjusted net income	$	59,493	$	18,515	$	44,411
Denominator:
Weighted-average shares		25,683,745		25,751,544		26,013,716
Effect of dilutive securities		740,644		505,026		516,411
Adjusted weighted-average shares and assumed conversions		26,424,389		26,256,570		26,530,127
Earnings per common share	$	2.25	$	0.71	$	1.67

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 RSUs were modified to remove dividend rights and, therefore, the RSUs granted in 2017, 2016, and 2015 are not participating securities. For the year ended December 31, 2017, 2016, and 2015 outstanding stock awards of 0.1 million, 0.4 million, and 0.2 million, respectively, were not included in the diluted earnings per share calculations because their inclusion would have the effect of increasing the earnings per share.