Earnings Per Common Share and Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Earnings Per Common Share and Stockholders' Equity

Earnings Per Common Share

The following table sets forth the computation of earnings per common share and earnings per common share - assuming dilution:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands, except per share data)
Numerator:
Net income available to common stockholders - numerator for earnings per common share	$	301,682	$	141,947	$	1,206,647	$	348,099

Denominator:
Weighted average common shares outstanding	87,707,426		92,478,154		92,338,919		94,325,984
Effect of dilutive securities:
Stock options and deferred compensation agreements	452,321		237,076		517,490		224,519
Restricted stock and restricted stock units	421,391		328,430		413,106		316,897
Denominator for earnings per common share - assuming dilution	88,581,138		93,043,660		93,269,515		94,867,400

Earnings per common share	$	3.44	$	1.53	$	13.07	$	3.69
Earnings per common share - assuming dilution	$	3.41	$	1.53	$	12.94	$	3.67

There were no options to purchase shares of our common stock outstanding excluded from the computation of diluted earnings per common share during the three and nine months ended September 30, 2022, as the exercise price of all options outstanding was less than the average market price of our common shares. During the three months ended September 30, 2021, there were 336,598 options to purchase shares of our common stock outstanding, with an exercise price of $31.31 - 32.58, excluded from the computation of diluted earnings per common share. During the nine months ended September 30, 2021, there were 226,598 options to purchase shares of our common stock outstanding, with an exercise price of $31.63 - $32.58, excluded from the computation of diluted earnings per common share.

Stockholders' Equity

On June 10, 2020, we issued 12,000 shares of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B ("Series B") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $290.3 million.

On November 21, 2019 we issued 16,000 shares of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A ("Series A") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $388.9 million.

Dividends on the Series A and Series B preferred stock are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the first day of March, June, September and December of each year, commencing on March 1, 2020 for Series A and on December 1, 2020 for Series B. For the three and nine months ended September 30, 2022 and 2021, we paid dividends totaling $5.9 million and $17.8 million on the Series A preferred stock and $5.0 million and $14.9 million on the Series B preferred stock, respectively. The Series A and Series B preferred stock rank senior to our common stock with respect to dividends, to the extent declared, and in liquidation, to the extent of the liquidation preference. The Series A and Series B preferred stock are not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions.

Brookfield Asset Management Equity Investment

On October 18, 2020, we announced an agreement with Brookfield Asset Management, Inc. and its affiliated entities (collectively, "Brookfield") under which Brookfield would acquire up to a 19.9% ownership interest of common stock in the Company. The equity investment by Brookfield took place in two stages: an initial purchase of a 9.9% equity interest at $37.00 per share which closed on November 30, 2020 with Brookfield purchasing 9,106,042 shares, and a second purchase of an additional 6,775,000 shares which were issued to Brookfield at $37.33 per share in January of 2022, resulting in total ownership of approximately 16%. Brookfield also received the right to nominate one candidate for the Company’s Board of Directors following the initial equity investment.

Share Repurchase Program

On October 18, 2020, the Company's Board of Directors approved a $500 million share repurchase program. On November 19, 2021, the Company's Board of Directors authorized the repurchase of an additional $500 million of Company common stock. The purpose of the share repurchase program is to both offset dilution from the issuance of shares to Brookfield and to institute a regular cash return program for shareholders.

From the 2020 inception of the share repurchase program through September 30, 2022, we have repurchased approximately 22.7 million shares of our common stock at an average price of $34.63 per common share, including 13.6 million shares repurchased during the nine months ended September 30, 2022. As of September 30, 2022, we had $213 million remaining under our share repurchase program.

Treasury Stock

As of September 30, 2022, we held 23,432,644 shares of treasury stock with a carrying value of $780.2 million. As of December 31, 2021, we held 9,936,715 shares of treasury stock with a carrying value of $260.6 million.