Earnings per Share

9 Months Ended

Sep. 30, 2020

In February 2019, the Compensation Committee of the Corporation’s Board of Directors reviewed the various forms of outstanding equity awards, including restricted stock and restricted stock units (“RSUs”), and approved that unvested restricted stock awards will be considered participating securities. As a result of the different treatment of unvested restricted stock and unvested RSUs, beginning in 2019, earnings per common share is computed using the two-class method.

Under the two-class method, distributed and undistributed earnings allocable to participating securities are deducted from net income to determine net income allocable to common shareholders, which is then used in the numerator of both basic and diluted earnings per share calculations. Basic earnings per common share is computed by dividing net income allocable to common shareholders by the weighted average number of common shares outstanding for the reporting period, excluding outstanding participating securities. Diluted earnings per common share is computed by dividing net income allocable to common shareholders by the weighted average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares, but excludes awards considered participating securities. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect.

The following tables set forth the Corporation’s earnings per share calculations for the periods indicated:


	Three Months Ended
	September 30, 2020		June 30, 2020		September 30, 2019
	(Dollars in thousands, except per share data)
Basic
Net income (loss)	$	66,566	$	(99,091)	$	41,375
Less: Dividends and undistributed earnings allocated to participating securities	(612)		(222)		(432)
Net income (loss) allocated to common stockholders	$	65,954	$	(99,313)	$	40,943

Weighted average common shares outstanding	93,529,967		70,425,027		59,293,218
Basic earnings (loss) per common share	$	0.71	$	(1.41)	$	0.69

Diluted
Net income (loss) allocated to common stockholders	$	65,954	$	(99,313)	$	40,943

Weighted average common shares outstanding	93,529,967		70,425,027		59,293,218
Diluted effect of share-based compensation	189,200		—		377,637

Weighted average diluted common shares	93,719,167		70,425,027		59,670,855
Diluted earnings (loss) per common share	$	0.70	$	(1.41)	$	0.69


	Nine Months Ended
	September 30, 2020		September 30, 2019
	(Dollars in thousands, except per share data)
Basic
Net income (loss)	$	(6,785)	$	118,620

Less: Dividends and undistributed earnings allocated to participating securities	(564)		(1,223)
Net income (loss) allocated to common stockholders	$	(7,349)	$	117,397

Weighted average common shares outstanding	74,391,688		60,853,081
Basic earnings (loss) per common share	$	(0.10)	$	1.93

Diluted
Net income (loss) allocated to common stockholders	$	(7,349)	$	117,397

Weighted average common shares outstanding	74,391,688		60,853,081
Diluted effect of share-based compensation	—		348,777

Weighted average diluted common shares	74,391,688		61,201,858
Diluted earnings (loss) per common share	$	(0.10)	$	1.92

The impact of stock options, which are anti-dilutive, are excluded from the computations of diluted earnings per share. The dilutive impact of these securities could be included in future computations of diluted earnings per share if the market price of the common stock increases. For the three months ended September 30, 2020, there were 27,815 potential common shares that were anti-dilutive. As a result of incurring a net loss for the nine months ended September 30, 2020, potential common shares of 173,235 were excluded from diluted loss per share because the effect would have been anti-dilutive.