Net Income Per Common Share
(In Thousands, Except Share Data)
Basic and diluted net income per common share calculations are as follows for the periods presented:
 Year Ended December 31,
 202420232022
Basic
Net income applicable to common stock$195,457 $144,678 $166,068 
Average common shares outstanding59,350,157 56,099,689 55,904,579 
Net income per common share—basic$3.29 $2.58 $2.97 
Diluted
Net income applicable to common stock$195,457 $144,678 $166,068 
Average common shares outstanding59,350,157 56,099,689 55,904,579 
Effect of dilutive stock-based compensation398,633 348,474 309,651 
Average common shares outstanding—diluted59,748,790 56,448,163 56,214,230 
Net income per common share—diluted$3.27 $2.56 $2.95 
Outstanding stock-based compensation awards that could potentially dilute basic net income per common share in the future that were not included in the computation of diluted net income per common share due to their anti-dilutive effect were as follows for the periods presented:
Year Ended
 December 31,
 202420232022
Number of shares6,6009,250

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.