Note 3 – Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. There were no anti-dilutive shares in the three and nine months ended September 30, 2018 and 2017. The calculations of basic and diluted earnings per share are as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
*(In thousands except share and per share data)*	2018		2017		2018		2017
Basic:
Net income	$	7,610	$	6,863	$	23,211	$	19,683
Weighted-average common shares outstanding		12,245,975		12,251,084		12,239,678		12,257,337
Basic earnings per share	$	.62	$	.56	$	1.90	$	1.61

Diluted:
Net income	$	7,610	$	6,863	$	23,211	$	19,683
Weighted-average common shares outstanding		12,245,975		12,251,084		12,239,678		12,257,337
Effect of dilutive restricted stock and stock appreciation rights		206,388		176,767		200,315		179,029
Weighted-average common shares outstanding assuming dilution assuming dilution		12,452,363		12,427,851		12,439,993		12,436,366
Diluted earnings per share	$	.61	$	.55	$	1.87	$	1.58