EARNINGS PER COMMON SHARE

3 Months Ended

Sep. 30, 2020

Earnings per common share (“EPS”) are presented under two formats: basic EPS and diluted EPS. Basic EPS is computed by dividing the net income attributable to common stock (net income after deducting dividends on preferred stock) by the sum of the weighted-average number of common shares outstanding during the year and the unvested average of participating RSUs. Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as nonparticipating RSUs, stock options and convertible preferred stock.

The Company accounts for unvested stock-based compensation awards containing non-forfeitable rights to dividends or dividend equivalents (collectively, “dividends”) as participating securities and includes the awards in the EPS calculation using the two-class method. The Company had granted restricted stock units under the 2004 Stock Incentive Plan to certain directors and employees, which entitle the recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. Under the 2014 Stock Incentive Plan, RSUs have no stockholder rights, meaning they are not entitled to dividends and are considered nonparticipating. These nonparticipating RSUs are not included in the basic EPS calculation and are included in the diluted EPS calculation using the treasury stock method.

The following table presents the calculation of basic and diluted EPS:


	Three Months Ended
	September 30,
(Dollars in thousands, except per share data)		2020		2019
Earnings Per Common Share
Net income		$	53,022	$	40,786
Preferred stock dividends		(77)		(77)
Net income attributable to common stockholders		$	52,945	$	40,709
Average common shares outstanding		59,509,320		61,246,664

Total qualifying shares		59,509,320		61,246,664
Earnings per common share		$	0.89	$	0.66
Diluted Earnings Per Common Share
Dilutive net income attributable to common stockholders		$	52,945	$	40,709
Average common shares issued and outstanding		59,509,320		61,246,664
Dilutive effect of average unvested RSUs		417,464		532,861
Total dilutive common shares outstanding		59,926,784		61,779,525
Diluted earnings per common share		$	0.88	$	0.66