EARNINGS PER COMMON SHARE
Presented below are the calculations for basic and diluted earnings per common share.
 Years Ended December 31,
(in thousands, except per share data)202520242023
Net income$150,686 $124,059 $61,516 
Weighted average common shares outstanding14,980 15,049 14,743 
Effect of dilutive common stock awards424 367 328 
Diluted weighted average common shares outstanding15,404 15,416 15,071 
Basic earnings per common share$10.06 $8.24 $4.17 
Diluted earnings per common share$9.78 $8.05 $4.08 
For the year ended December 31, 2025, less than 0.1 million shares were excluded from the calculation of diluted earnings per common share as the effect would have been anti-dilutive. Comparatively, for the years ended December 31, 2024 and December 31, 2023, approximately 0.2 million shares and 0.8 million shares, respectively, were excluded from the calculation of diluted earnings per common share as the effect would have been anti-dilutive.

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.