Earnings per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share

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)	September 30, 2022		June 30, 2022		September 30, 2021
Basic
Net income	$	73,363	$	69,803	$	90,088
Less: dividends and undistributed earnings allocated to participating securities	(917)		(867)		(937)
Net income allocated to common stockholders	$	72,446	$	68,936	$	89,151

Weighted average common shares outstanding	93,793,502		93,765,264		93,549,639
Basic earnings per common share	$	0.77	$	0.74	$	0.95

Diluted
Net income allocated to common stockholders	$	72,446	$	68,936	$	89,151

Weighted average common shares outstanding	93,793,502		93,765,264		93,549,639
Dilutive effect of share-based compensation	327,135		275,427		511,085

Weighted average diluted common shares	94,120,637		94,040,691		94,060,724
Diluted earnings per common share	$	0.77	$	0.73	$	0.95


	Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2022		September 30, 2021
Basic
Net income	$	210,070	$	255,058

Less: dividends and undistributed earnings allocated to participating securities	(2,467)		(2,641)
Net income allocated to common stockholders	$	207,603	$	252,417

Weighted average common shares outstanding	93,687,230		93,571,468
Basic earnings per common share	$	2.22	$	2.70

Diluted
Net income allocated to common stockholders	$	207,603	$	252,417

Weighted average common shares outstanding	93,687,230		93,571,468
Dilutive effect of share-based compensation	367,886		518,939

Weighted average diluted common shares	94,055,116		94,090,407
Diluted earnings per common share	$	2.21	$	2.68

Shares or stock options are excluded from the computations of diluted earnings per share when their inclusion have an anti-dilutive effect. 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 nine months ended September 30, 2022 and September 30, 2021, and the three months ended June 30, 2022 there were no potential common shares that were anti-dilutive.