Earnings Per Share

9 Months Ended

Sep. 30, 2023

Note 14 — Earnings Per Share

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that shared in earnings.

The following table presents the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In thousands, except per share data)				(In thousands, except per share data)
Basic EPS:
Net income attributable to common shareholders	$	12,086	$	9,983	$	34,918	$	23,749
Less: earnings attributable to participating securities		183		152		530		362
Net earnings attributable to common shareholders	$	11,903	$	9,831	$	34,388	$	23,387
Weighted average common shares outstanding		32,275		31,922		32,166		31,910
Basic earnings per common share	$	0.37	$	0.31	$	1.07	$	0.73
Diluted EPS:
Net income attributable to common stockholders	$	12,086	$	9,983	$	34,918	$	23,749
Weighted average common shares outstanding		32,275		31,922		32,166		31,910
Add dilutive effects for warrants		2,116		2,061		1,957		2,058
Add dilutive effects for stock options		9		6		6		5
Add dilutive effects of unvested restricted stock awards		230		210		135		180
Add dilutive effects of unvested performance-based stock units		101		—		49		—
Weighted average diluted common shares outstanding		34,731		34,199		34,313		34,153
Diluted earnings per common share	$	0.35	$	0.29	$	1.02	$	0.70

The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would have been anti-dilutive (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Stock options		763		773		763		773
Share equivalents excluded from EPS		763		773		763		773