Earnings Per Share

3 Months Ended

Mar. 31, 2023

The following table sets forth a reconciliation of the numerator and denominator of basic and diluted earnings per share computations contained in the period-ended consolidated financial statements for the three months ended March 31, 2023 and 2022:



($ in thousands, except for share and per share amounts)	2023		2022
Numerator
Net income	$	15,556	$	16,311
Less: Undistributed income allocated to participating securities	(1,274)		(7,823)
Net income attributable to common shareholders (numerator for basic earnings per share)	14,282		8,488
Add back: Undistributed income allocated to participating securities	1,274		7,823
Net income (numerator for diluted earnings per share under the two-class method)	$	15,556	$	16,311
Denominator
Basic weighted-average common shares	32,848,243		16,376,720

Preferred shares (if converted method)	2,931,256		15,092,585
Contingently issuable instruments (treasury stock method)	708,746		714,185
Market condition awards (contingently issuable)	87,750		40,460
Performance awards (contingently issuable)	38,441		32,362
Restricted stock units (treasury stock method)	318,421		155,995
Options (treasury stock method)	19,216		—
Diluted weighted-average common share equivalents	36,952,073		32,412,307
Basic earnings per share	$	0.43	$	0.52
Diluted earnings per share	$	0.42	$	0.50

The Company’s preferred shares participate in dividends and distributions with common stock on an as-converted basis and represent a participating security. Instruments awarded to employees that provide the holder the right to purchase common stock at a fixed price were included as potential common shares, weighted for the portion of the period they were granted, if dilutive.

Anti-dilutive instruments are excluded from the calculation of diluted weighted-average common share equivalents as they would have an anti-dilutive impact. The following table sets forth the weighted-average instruments that were excluded from the calculation of diluted weighted-average common share equivalents during the three months ended March 31, 2023 and 2022.



	2023	2022

Contingently issuable instruments (treasury stock method)	345,764	—
Market condition awards (contingently issuable)	13,795	—
Performance awards (contingently issuable)	40,080	—
Restricted stock units (treasury stock method)	390,076	—
Options (treasury stock method)	333,551	—

The Company’s common and preferred shares financed by stock notes are contingently issuable instruments where the holder must return, all or part of, the shares if the stock notes are not paid off. The following table sets forth common share equivalents of contingently issuable instruments (in shares) that were excluded from basic earnings per share for the three months ended March 31, 2023 and 2022:



	2023	2022
Common shares	1,054,510	183,604
Preferred shares, if converted	—	1,216,389
Total	1,054,510	1,399,993

The impact of the contingently issuable instruments on diluted earnings per share was calculated using the treasury stock method and included in the reconciliation of the denominator of the basic and diluted earnings per share computations for the three months ended March 31, 2023 and 2022.