The Company’s shares of restricted stock contain rights to receive nonforfeitable dividends and thus are participating securities that require the computation of basic earnings per share using the two-class method. The shares of restricted stock are both potential shares of common stock and participating securities so the Company calculates diluted earnings per share by using the more dilutive of the treasury stock method or the two-class method. The calculation of earnings per share for the net income available to common shareholders excludes the distribution of dividends and the undistributed earnings attributable to the participating securities from the numerator. The diluted earnings per share includes stock options, PVRSUs, and RSUs in the calculation of the weighted average shares of common stock outstanding.

The computation of basic and diluted earnings per share was as follows:


	Three Months Ended
	March 31,
(in thousands, except per share amounts)	2026		2025
Numerator:
Net income	$	20,304	$	44,534
Income allocated to participating securities	(79)		(219)
Net income available to common shareholders	$	20,225	$	44,315
Denominator:
Weighted average shares of common stock outstanding – basic	45,719		46,494
Basic earnings per share	$	0.44	$	0.95

Numerator:
Net income	$	20,304	$	44,534
Income allocated to participating securities	(79)		(219)
Net income available to common shareholders	$	20,225	$	44,315
Denominator:
Weighted average shares of common stock outstanding – basic	45,719		46,494
Dilutive effect of stock options, PVRSUs, and RSUs	314		629
Weighted average shares of common stock outstanding – diluted	46,033		47,123
Diluted earnings per share	$	0.44	$	0.94

The following securities have been excluded from the calculation of the diluted weighted average shares of common stock outstanding because the inclusion of these securities would have an anti-dilutive effect: