Earnings Per Share

9 Months Ended

Sep. 30, 2023

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, 2023		September 30, 2022
Basic
Net income	$	46,030	$	73,363
Less: dividends and undistributed earnings allocated to participating securities	(823)		(917)
Net income allocated to common stockholders	$	45,207	$	72,446

Weighted average common shares outstanding	94,189,844		93,793,502
Basic earnings per common share	$	0.48	$	0.77

Diluted
Net income allocated to common stockholders	$	45,207	$	72,446

Weighted average common shares outstanding	94,189,844		93,793,502
Dilutive effect of share-based compensation	93,164		327,135

Weighted average diluted common shares	94,283,008		94,120,637
Diluted earnings per common share	$	0.48	$	0.77


	Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2023		September 30, 2022
Basic
Net income	$	166,228	$	210,070

Less: dividends and undistributed earnings allocated to participating securities	(2,674)		(2,467)
Net income allocated to common stockholders	$	163,554	$	207,603

Weighted average common shares outstanding	94,072,463		93,687,230
Basic earnings per common share	$	1.74	$	2.22

Diluted
Net income allocated to common stockholders	$	163,554	$	207,603

Weighted average common shares outstanding	94,072,463		93,687,230
Dilutive effect of share-based compensation	142,383		367,886

Weighted average diluted common shares	94,214,846		94,055,116
Diluted earnings per common share	$	1.74	$	2.21

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. There were no potential common shares that were anti-dilutive for the three months ended September 30, 2023. For the nine months ended September 30, 2023, there were 48,808 weighted average common shares that were anti-dilutive. There were no potential common shares that were anti-dilutive for the three and nine months ended September 30, 2022.