EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE I: 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 June 30, 2022.

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 0.4 million and 0.3 million weighted-average anti-dilutive stock options outstanding for the three months and six months ended June 30, 2022, respectively, compared to approximately 0.2 million and 0.1 million weighted-average anti-dilutive stock options outstanding for the three months and six months ended June 30, 2021, respectively, that were not included in the computation below.

The following is a reconciliation of basic to diluted earnings per share for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(000’s omitted, except per share data)	2022		2021		2022		2021
Net income	$	39,805	$	47,944	$	86,860	$	100,794
Income attributable to unvested stock-based compensation awards		(125)		(127)		(252)		(263)
Income available to common shareholders	$	39,680	$	47,817	$	86,608	$	100,531
Weighted-average common shares outstanding – basic		53,928		54,007		53,958		53,927
Basic earnings per share	$	0.74	$	0.89	$	1.61	$	1.86
Net income	$	39,805	$	47,944	$	86,860	$	100,794
Income attributable to unvested stock-based compensation awards		(125)		(127)		(252)		(263)
Income available to common shareholders	$	39,680	$	47,817	$	86,608	$	100,531
Weighted-average common shares outstanding – basic		53,928		54,007		53,958		53,927
Assumed exercise of stock options		293		462		341		455
Weighted-average common shares outstanding – diluted		54,221		54,469		54,299		54,382
Diluted earnings per share	$	0.73	$	0.88	$	1.60	$	1.85

Stock Repurchase Program

At its December 2020 meeting, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.68 million shares of the Company’s common stock, in accordance with securities and banking laws and regulations, through December 31, 2021. At its December 2021 meeting, the Board approved a new stock repurchase program for 2022, authorizing the repurchase of up to 2.70 million shares of the Company’s common stock, in accordance with securities and banking laws and regulations, through December 31, 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. The Company repurchased 250,000 shares under the authorized plan during the first six months of 2022 and did not repurchase any shares under the authorized plan during the first six months of 2021. Refer to Part II, Item 2: Unregistered Sales of Equity Securities and Use of Proceeds for additional information regarding repurchases of the Company’s common stock.