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:




	2018		2017		2016
	(in thousands, except share and per share data)
Basic
Numerator:
Net income	$	67,262	$	59,726	$	18,652
Effect of unvested restricted stock awards		(150)		(238)		(138)
Adjusted net income	$	67,112	$	59,488	$	18,514
Denominator:
Weighted-average shares		25,679,736		25,683,745		25,751,544
Earnings per common share	$	2.61	$	2.32	$	0.72

Diluted
Numerator:
Net income	$	67,262	$	59,726	$	18,652
Effect of unvested restricted stock awards		(145)		(233)		(137)
Adjusted net income	$	67,117	$	59,493	$	18,515
Denominator:
Weighted-average shares		25,679,736		25,683,745		25,751,544
Effect of dilutive securities		1,019,095		740,644		505,026
Adjusted weighted-average shares and assumed conversions		26,698,831		26,424,389		26,256,570
Earnings per common share	$	2.51	$	2.25	$	0.71

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 2018, 2017, and 2016 are not participating securities. For the year ended December 31, 2018, 2017, and 2016 outstanding stock awards of 0.1 million, 0.1 million, and 0.4 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.