NOTE 3. Net Income per Share

Basic net income per common share is calculated as net income divided by the weighted average common shares outstanding during the reporting period. Common shares include vested and unvested restricted shares.

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options, were issued during the reporting period utilizing the treasury stock method.

The following is a reconciliation of the calculation of basic and diluted income per share:


	For the three months ended June 30,				For the six months ended June 30,
(In thousands, except per share amounts)	2026		2025		2026		2025
Net income	$	14,472	$	16,491	$	28,760	$	28,089
Weighted average common shares outstanding - Basic		10,041		10,033		10,026		10,043
Plus: Potential dilutive common stock equivalents		180		179		184		186
Weighted average common shares outstanding - Diluted		10,221		10,212		10,210		10,229
Net income per common share - Basic	$	1.44	$	1.64	$	2.87	$	2.79
Net income per common share - Diluted		1.42		1.61		2.82		2.74
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive		—		—		—		—