Capital Stock and Earnings Per Share (OMH Only)

9 Months Ended

Sep. 30, 2023

Capital Stock and Earnings Per Share (OMH Only)


9. Capital Stock and Earnings Per Share (OMH Only)

CAPITAL STOCK

OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance.

Changes in OMH shares of common stock issued and outstanding were as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022

Balance at beginning of period	120,446,799	123,726,559	121,042,125	127,809,640
Common stock issued	45,507	44,479	261,955	310,751
Common stock repurchased	(268,269)	(1,180,433)	(1,120,903)	(5,559,382)
Treasury stock issued	21,260	28,143	62,120	57,739

Balance at end of period	120,245,297	122,618,748	120,245,297	122,618,748

EARNINGS PER SHARE (OMH ONLY)

The computation of earnings per share was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions, except per share data)	2023		2022		2023		2022

Numerator (basic and diluted):
Net income	$	194	$	185	$	476	$	696
Denominator:
Weighted average number of shares outstanding (basic)	120,407,889		123,352,522		120,571,103		124,989,263
Effect of dilutive securities *	346,805		216,098		219,382		253,943
Weighted average number of shares outstanding (diluted)	120,754,694		123,568,620		120,790,485		125,243,206
Earnings per share:
Basic	$	1.61	$	1.50	$	3.95	$	5.56
Diluted	$	1.61	$	1.49	$	3.94	$	5.55

* We have excluded weighted-average unvested restricted stock units totaling 886,333 and 1,278,052 for the three months ended September 30, 2023 and 2022, respectively, and 933,663 and 1,230,739 for the nine months ended September 30, 2023 and 2022, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future.

Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units.