Basic and diluted earnings per share are computed pursuant to the two-class method. Under this method, the Company attributes net income to two classes: common stock and unvested restricted stock. Unvested restricted stock awards granted to employees under the Company’s Long-Term Incentive Plan are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock.

Diluted net income per share is calculated using the more dilutive of the two methods. Under both methods, the exercise of employee stock options is assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs:

The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in the table are in thousands):


	Three Months Ended March 31,
	2026		2025
Basic:
Net income	$	42,478	$	32,102
Less income allocated to participating securities	(585)		(842)
Net income attributable to common stock	$	41,893	$	31,260
Earnings per share, basic	$	2.30	$	1.74
Weighted-average shares outstanding	18,207		17,984
Diluted:
Net income	$	42,478	$	32,102
Less income allocated to participating securities	(585)		(840)
Net income attributable to common stock	$	41,893	$	31,262
Earnings per share, diluted	$	2.30	$	1.73
Weighted-average shares outstanding	18,207		17,984
Dilutive effect of restricted stock	99		157
Adjusted weighted-average shares outstanding under treasury stock method	18,306		18,141
Participating securities excluded under two-class method	(87)		(119)
Adjusted weighted-average shares outstanding under two-class method	18,219		18,022