Earnings Per Common Share

12 Months Ended

Dec. 31, 2021

4. Earnings Per Common Share

Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e. unvested restricted stock), not subject to performance based measures.

The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31:


	2021		2020		2019
	(In Thousands, Except Per Share Amounts)
Basic Earnings Per Share:
Net income available to common shareholders	$	126,051	$	63,077	$	49,370
Less: Income allocated to participating securities		123		89		36
Net income allocated to common shareholders	$	125,928	$	62,988	$	49,334
Weighted average common shares outstanding Including participating securities		37,145		35,952		19,844
Less: Participating securities		36		50		20
Average common shares		37,109		35,902		19,824
Basic earnings per common share	$	3.39	$	1.75	$	2.49
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	125,928	$	62,988	$	49,334
Weighted average common shares outstanding for basic earnings per common share		37,109		35,902		19,824
Add: Dilutive effects of stock options and restricted stock units		91		47		107
Average shares and dilutive potential common shares		37,200		35,949		19,931
Diluted earnings per common share	$	3.39	$	1.75	$	2.48

Shares subject to issue upon exercise of options and vesting requirements of restricted stock units of 34,065 in 2021, 97,724 in 2020 and zero in 2019 were excluded from the diluted earnings per common share calculation as they were anti-dilutive.