Earnings Per Common Share

6 Months Ended

Jun. 30, 2022

6. Earnings Per Common Share

Basic earnings per share are 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:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	22,360	$	31,385	$	48,717	$	72,381
Less: income allocated to participating securities		17		39		54		104
Net income allocated to common shareholders		22,343		31,346		48,663		72,277

Weighted average common shares outstanding including participating securities		35,608		37,322		35,816		37,327
Less: Participating securities		27		46		40		53
Average common shares		35,581		37,276		35,776		37,274

Basic earnings per common share	$	0.63	$	0.84	$	1.36	$	1.94
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	22,343	$	31,346	$	48,663	$	72,277
Weighted average common shares outstanding for basic earnings per common share		35,581		37,276		35,776		37,274
Add: Dilutive effects of stock options and restricted stock units		101		82		104		77
Average shares and dilutive potential common shares		35,682		37,358		35,880		37,351

Diluted earnings per common share	$	0.63	$	0.84	$	1.36	$	1.94

There were 18,462 and 17,261 shares for the three and six months ended June 30, 2022, respectively, that were excluded from the diluted earnings per common share calculation. There were no shares for the three and six months ended June 30, 2021 that were excluded from the dilutive earnings per common share calculation as no shares were anti-dilutive.