22. Net Income and Goodwill Amortization On January 1, 2002, TCF adopted SFAS No. 142, “Goodwill and Other Intangible Assets,” which requires that goodwill and other intangible assets with indefinite useful lives no longer be amortized, but instead be tested for impairment at least annually. The following table reconciles prior period net income and earnings per share to an adjusted basis, which excludes goodwill amortization, for comparison purposes: The computation of basic and diluted earnings per share is presented in the following table: (1) At December 31, 2002, December 31, 2001 and December 31, 2000, there were 1,145,000, 1,145,000 and 1,135,000 shares, respectively, of performance-based restricted stock granted to certain executive officers which will vest only if certain earnings per share goals are achieved by 2008. Failure to achieve the goals will result in all or a portion of the shares being forfeited. In accordance with SFAS No. 128, “Earnings per Share,” these shares have been deducted from weighted average shares outstanding used for the computation of basic and diluted earnings per common share, as all necessary conditions for inclusion have not been satisfied. The remaining unvested restricted stock grants vest over specified time periods, and are included in the computation of diluted earnings per common share in accordance with the treasury stock method prescribed in SFAS No. 128. page 71 23. Earnings per Common Share Year Ended December 31, (In thousands, except per-share data) 2002 2001 2000 Net Income Reported net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 232,931  $ 207,322 $ 186,245 Add back: Amortization of goodwill, net of applicable income taxes . . . . . . . . . . . – 7,600 7,543 Adjusted net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 232,931 $ 214,922 $ 193,788 Basic Earnings Per Common Share Reported earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.17 $ 2.73 $ 2.37 Amortization of goodwill, net of applicable income taxes . . . . . . . . . . . . . . . . . . . – .10 .09 Adjusted earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.17 $ 2.83 $ 2.46 Diluted Earnings Per Common Share Reported earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.15 $ 2.70 $ 2.35 Amortization of goodwill, net of applicable income taxes . . . . . . . . . . . . . . . . . . . – .10 .09 Adjusted earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.15 $ 2.80 $ 2.44 Year Ended December 31, (Dollars in thousands, except per-share data) 2002 2001 2000 Basic Earnings Per Common Share Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 232,931 $ 207,322 $ 186,245 Weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,240,321 78,233,471 80,881,499 Unvested restricted stock grants (1)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,644,879) (2,408,454) (2,232,734) Weighted average common shares outstanding  for basic earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,595,442 75,825,017 78,648,765 Basic earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.17 $ 2.73 $ 2.37 Diluted Earnings Per Common Share Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 232,931 $ 207,322 $ 186,245 Weighted average number of common shares outstanding adjusted for effect of dilutive securities: Weighted average common shares outstanding used  in basic earnings per common share calculation . . . . . . . . . . . . . . . . . . . . . 73,595,442 75,825,017 78,648,765 Net dilutive effect of: Stock option plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,222 149,711 113,338 Restricted stock plans (1)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221,280 868,209 626,572 73,940,944 76,842,937 79,388,675 Diluted earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.15 $ 2.70 $ 2.35