Earnings Per Share

9 Months Ended

Sep. 30, 2022

The Company uses the two-class method in calculating basic and diluted earnings per share. Net income/(loss) is allocated between our common stock and other participating securities based on their participation rights. Diluted net income per share has been computed using the weighted average number of shares of common stock outstanding and other dilutive securities. The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations and the calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and September 30, 2021 (in thousands, except share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator
Net income/(loss)	$	35,258	$	38,495	$	(12,958)	$	98,651
Less: Preferred stock dividends	6,899		4,804		34,865		12,040

Less: Undistributed earnings allocated to preferred stock	—		4,201		—		10,706
Net income/(loss) attributable to common stockholders (basic and diluted earnings per share)	$	28,359	$	29,490	$	(47,823)	$	75,905

Denominator
Weighted-average common shares outstanding for basic earnings per share	83,665,250		44,185,241		67,965,397		44,245,733
Effect of dilutive shares (1):
Unvested restricted shares	—		15,323		—		15,737
Weighted-average common shares outstanding for diluted earnings per share	83,665,250		44,200,564		67,965,397		44,261,470

Basic earnings per share	$	0.34	$	0.67	$	(0.70)	$	1.72
Diluted earnings per share	$	0.34	$	0.67	$	(0.70)	$	1.71

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(1) The effect of dilutive shares excluded an aggregate of 516,830 and 465,237 weighted average restricted stock units for the three and nine months ended September 30, 2022, respectively, as their effect was anti-dilutive. Additionally, the effect of dilutive shares excluded an aggregate of 5,789,378 and 21,508,045 weighted average common equivalent of convertible preferred shares for the three and nine months ended September 30, 2022, respectively, as the effect was anti-dilutive.