Earnings (Loss) Per Common Share and Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Earnings (Loss) Per Common Share and Stockholders' Equity

Earnings (Loss) Per Common Share

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


	Three Months Ended March 31,
		2023		2022
		(Dollars in thousands, except per share data)
Numerator:
Net income (loss) available to common stockholders - numerator for earnings (loss) per common share		$	(166,913)	$	668,546

Denominator:
Weighted average common shares outstanding		83,416,966		96,866,125
Effect of dilutive securities:
Stock options and deferred compensation agreements		597,119		612,265
Restricted stock and restricted stock units		737,283		474,923
Antidilutive impact due to net loss		(1,334,402)		—
Denominator for earnings (loss) per common share - assuming dilution		83,416,966		97,953,313

Earnings (loss) per common share		$	(2.00)	$	6.90
Earnings (loss) per common share - assuming dilution		$	(2.00)	$	6.83

There were no options to purchase shares of our common stock outstanding excluded from the computation of diluted earnings (loss) per common share during the three months ended March 31, 2023 and 2022, as the exercise price of all options outstanding was less than the average market price of our common shares for those periods.

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 months ended March 31, 2023 and 2022, we paid dividends totaling $5.9 million and $5.9 million for Series A preferred stock and $5.0 million and $5.0 million for 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.

Share Repurchase Program

As part of a share repurchase program, the Company's Board of Directors approved the repurchase of Company common stock of $500 million on November 19, 2021, and an additional $400 million on November 11, 2022. The share repurchase program has offset dilution from the issuance of shares to Brookfield, and its purpose remains to institute a regular cash return program for shareholders.

On March 17, 2023 we entered into an accelerated share repurchase (ASR) agreement with JPMorgan Chase Bank, National Association to repurchase an aggregate of $200 million of our common stock. Under the ASR agreement, we received an initial share delivery of approximately 4.8 million shares representing approximately 80% of the number of shares initially underlying the ASR. The average price paid for the initial share delivery under the ASR was $33.12 per common share. The final settlement is expected in the third quarter of 2023 and will be based on the volume-weighted average stock price during the ASR term, less a discount and subject to potential adjustments under the ASR. The ASR agreement was determined to be an equity contract.

From the 2020 inception of the share repurchase program through March 31, 2023, we have repurchased approximately 31.2 million shares of our common stock at an average price of $34.76 per common share, including 2.4 million shares repurchased in the open market during the three months ended March 31, 2023. As of March 31, 2023, we had $276 million remaining under our share repurchase program.

Treasury StockAs of March 31, 2023, we held 31,809,876 shares of treasury stock with a carrying value of $1,075.0 million. As of December 31, 2022, we held 24,590,353 shares of treasury stock with a carrying value of $823.1 million.