Earnings Per Share

12 Months Ended

Dec. 31, 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 Company’s earnings per share calculations for the periods indicated:


	For the Year Ended December 31,
(Dollars in thousands, except per share data)	2021		2020		2019
Basic
Net income	$	339,889	$	60,351	$	159,718
Less: dividends and undistributed earnings allocated to participating securities	(3,517)		(798)		(1,650)
Net income allocated to common stockholders	$	336,372	$	59,553	$	158,068

Weighted average common shares outstanding	93,532,109		79,209,560		60,339,714
Basic earnings per common share	$	3.60	$	0.75	$	2.62

Diluted
Net income allocated to common stockholders	$	336,372	$	59,553	$	158,068

Weighted average common shares outstanding	93,532,109		79,209,560		60,339,714
Dilutive effect of share-based compensation	480,028		287,513		352,567
Dilutive effect of stock warrants	—		9,201		—
Weighted average diluted common shares	94,012,137		79,506,274		60,692,281
Diluted earnings per common share	$	3.58	$	0.75	$	2.60

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. There were no potential common shares that were anti-dilutive at December 31, 2021 and December 31, 2019. For the year ended December 31, 2020, there were 737 weighted average common shares that were anti-dilutive.