Earnings Per Common Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In Thousands, except per share data)
Basic Earnings Per Share:
Net income available to common shareholders	$	28,195	$	28,360	$	76,912	$	100,741
Less: income allocated to participating securities		22		27		80		98
Net income allocated to common shareholders		28,173		28,333		76,832		100,643

Weighted average common shares outstanding including participating securities		35,610		37,135		35,746		37,262
Less: Participating securities		28		35		37		36
Average common shares		35,582		37,100		35,709		37,226

Basic earnings per common share	$	0.79	$	0.76	$	2.15	$	2.70
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	28,173	$	28,333	$	76,832	$	100,643
Weighted average common shares outstanding for basic earnings per common share		35,582		37,100		35,709		37,226
Add: Dilutive effects of stock options and restricted stock units		122		85		109		85
Average shares and dilutive potential common shares		35,704		37,185		35,818		37,311

Diluted earnings per common share	$	0.79	$	0.76	$	2.15	$	2.70

There were 17,644 and 18,437 shares for the three and nine months ended September 30, 2022, respectively, that were excluded from the diluted earnings per common share calculation. There were no shares for the three and nine months ended September 30, 2021 that were excluded from the dilutive earnings per common share calculation as no shares were anti-dilutive.