Note 9 – Earnings Per Share

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

	Three Months Ended				Nine Months Ended
	September 30				September 30
(in thousands except per share data)	2017		2016		2017		2016
Numerator:
Net income	$	13,763	$	12,312	$	36,581	$	35,480

Denominator:
Basic earnings per share:
Weighted average shares		17,633		17,554		17,625		17,532
Diluted earnings per share:
Effect of dilutive stock options and restricted stock grants		20		15		20		16
Adjusted weighted average shares		17,653		17,569		17,645		17,548

Earnings per share:
Basic earnings per share	$	0.78	$	0.70	$	2.08	$	2.02
Diluted earnings per share		0.78		0.70		2.07		2.02

There were no options to purchase common shares that were excluded from the diluted calculations above for the three and nine months ended September 30, 2017. In addition to in-the-money stock options, unvested restricted stock grants were also used in the calculation of diluted earnings per share based on the treasury method. There were no options to purchase common shares that were excluded from the diluted calculations for the three months ended September 30, 2016. Options to purchase 15,730 common shares at a weighted average price of $35.409 were excluded from the diluted calculations above for the nine months ended September 30, 2016, because the exercise prices on the options were greater than the average market price for the period.