Earnings per Share

6 Months Ended

Jun. 30, 2021

The Company’s restricted stock awards contain non-forfeitable rights to dividends and therefore are considered participating securities. The Company calculates basic and diluted earnings per common share 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
(Dollars in thousands, except per share data)	June 30, 2021		March 31, 2021		June 30, 2020
Basic
Net income (loss)	$	96,302	$	68,668	$	(99,091)
Less: dividends and undistributed earnings allocated to participating securities	(1,034)		(665)		(222)
Net income (loss) allocated to common stockholders	$	95,268	$	68,003	$	(99,313)

Weighted average common shares outstanding	93,635,392		93,529,147		70,425,027
Basic earnings (loss) per common share	$	1.02	$	0.73	$	(1.41)

Diluted
Net income (loss) allocated to common stockholders	$	95,268	$	68,003	$	(99,313)

Weighted average common shares outstanding	93,635,392		93,529,147		70,425,027
Diluted effect of share-based compensation	582,636		564,497		—

Weighted average diluted common shares	94,218,028		94,093,644		70,425,027
Diluted earnings (loss) per common share	$	1.01	$	0.72	$	(1.41)


	Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2021		June 30, 2020
Basic
Net income (loss)	$	164,970	$	(73,351)

Less: dividends and undistributed earnings allocated to participating securities	(1,672)		(356)
Net income (loss) allocated to common stockholders	$	163,298	$	(73,707)

Weighted average common shares outstanding	93,582,563		64,716,109
Basic earnings (loss) per common share	$	1.74	$	(1.14)

Diluted
Net income (loss) allocated to common stockholders	$	163,298	$	(73,707)

Weighted average common shares outstanding	93,582,563		64,716,109
Diluted effect of share-based compensation	573,177		—

Weighted average diluted common shares	94,155,740		64,716,109
Diluted earnings (loss) per common share	$	1.73	$	(1.14)

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 and six months ended June 30, 2021 and the three months ended March 31, 2021 there were no potential common shares that were anti-dilutive. As a result of incurring a net loss for the three and six months ended June 30, 2020, potential common shares of 234,518 and 163,832, respectively, were excluded from diluted loss per share because the effect would have been anti-dilutive.