EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE M:  EARNINGS PER SHARE

The two class method is used in the calculations 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 and participation rights in undistributed earnings. The Company has determined that all of its outstanding non-vested stock awards are participating securities as of December 31, 2021.

Basic earnings per share are computed based on the weighted-average of the common shares outstanding for the period. Diluted earnings per share are based on the weighted-average of the shares outstanding and the assumed exercise of stock options during the year. The dilutive effect of options is calculated using the treasury stock method of accounting. The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period. There were approximately 0.1 million, 0.6 million and 0.5 million weighted-average anti-dilutive stock options outstanding at December 31, 2021, 2020 and 2019, respectively, which were not included in the computation below.

The following is a reconciliation of basic to diluted earnings per share for the years ended December 31, 2021, 2020 and 2019.

(000’s omitted, except per share data)	2021		2020		2019
Net income	$	189,694	$	164,676	$	169,063
Income attributable to unvested stock-based compensation awards		(445)		(514)		(400)
Income available to common shareholders	$	189,249	$	164,162	$	168,663
Weighted-average common shares outstanding – basic		53,977		52,969		51,732
Basic earnings per share	$	3.51	$	3.10	$	3.26
Net income	$	189,694	$	164,676	$	169,063
Income attributable to unvested stock-based compensation awards		(445)		(514)		(400)
Income available to common shareholders	$	189,249	$	164,162	$	168,663
Weighted-average common shares outstanding		53,977		52,969		51,732
Assumed exercise of stock options		423		352		516
Weighted-average common shares outstanding – diluted		54,400		53,321		52,248
Diluted earnings per share	$	3.48	$	3.08	$	3.23
Cash dividends declared per share	$	1.70	$	1.66	$	1.58

Stock Repurchase Program

At its December 2020 meeting, the Board approved a stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to 2,680,000 shares of the Company’s common stock, in accordance with securities and banking laws and regulations, during the twelve-month period starting January 1, 2021. There were 67,500 shares repurchased pursuant to the 2021 stock repurchase program in the fourth quarter of 2021. At its December 2021 meeting, the Board approved a new stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to 2,697,000 shares of the Company’s common stock, in accordance with securities and banking laws and regulations, during the twelve-month period starting January 1, 2022. Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities. The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company’s discretion.