Note 2    Earnings Per Common Share
The computation of basic and diluted earnings per common share is presented below for the periods indicated (in thousands, except share and per share data):
Years Ended December 31,
c202520242023
Basic earnings per common share: 
Numerator: 
Net income
$268,353 $232,467 $178,671 
Distributed and undistributed earnings allocated to participating securities
(5,697)(4,113)(3,565)
Income allocated to common stockholders for basic earnings per common share$262,656 $228,354 $175,106 
Denominator:
Weighted average common shares outstanding75,039,662 74,694,303 74,493,898 
Less average unvested stock awards(1,115,829)(1,098,045)(1,168,004)
Weighted average shares for basic earnings per common share73,923,833 73,596,258 73,325,894 
Basic earnings per common share$3.55 $3.10 $2.39 
Diluted earnings per common share:
Numerator:
Income allocated to common stockholders for basic earnings per common share$262,656 $228,354 $175,106 
Adjustment for earnings reallocated from participating securities
(648)(402)(275)
Income used in calculating diluted earnings per common share$262,008 $227,952 $174,831 
Denominator:
Weighted average shares for basic earnings per common share73,923,833 73,596,258 73,325,894 
Dilutive effect of certain share-based awards380,640 382,043 197,441 
Weighted average shares for diluted earnings per common share
74,304,473 73,978,301 73,523,335 
Diluted earnings per common share$3.53 $3.08 $2.38 
Potentially dilutive unvested shares totaling 1,724,392, 1,690,743, and 1,738,534 were outstanding at December 31, 2025, 2024 and 2023, respectively, but excluded from the calculation of diluted earnings per common share because their inclusion would have been anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2023Feb 20, 2024
2022Feb 22, 2023
2021Feb 24, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 27, 2019

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.