Earnings per Share

6 Months Ended

Jun. 30, 2020

In February 2019, the Compensation Committee of the Corporation’s Board of Directors reviewed the various forms of outstanding equity awards, including restricted stock and restrict stock units (“RSUs”), and approved that unvested restricted stock awards will be considered participating securities. As a result of the different treatment of unvested restricted stock and unvested RSUs, beginning in 2019, earnings per common share is computed using the two-class method.

Under the two-class method, distributed and undistributed earnings allocable to participating securities are deducted from net income to determine net income allocable to common shareholders, which is then used in the numerator of both basic and diluted earnings per share calculations. Basic earnings per common share is computed by dividing net income allocable to common shareholders by the weighted average number of common shares outstanding for the reporting period, excluding outstanding participating securities. Diluted earnings per common share is computed by dividing net income allocable to common shareholders by the weighted average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares, but excludes awards considered participating securities. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect.

The following tables set forth the Corporations’s earnings per share calculations for the periods indicated:


	Three Months Ended
	June 30, 2020		March 31, 2020		June 30, 2019
	(Dollars in thousands, except per share data)
Basic
Net (loss) income	$	(99,091)	$	25,740	$	38,527

Less: Dividends and undistributed earnings allocated to participating securities	(222)		(232)		(444)
Net (loss) income allocated to common stockholders	$	(99,313)	$	25,508	$	38,083

Weighted average common shares outstanding	70,425,027		59,007,191		61,308,046
Basic (loss) earnings per common share	$	(1.41)	$	0.43	$	0.62

Diluted
Net (loss) income allocated to common stockholders	$	(99,313)	$	25,508	$	38,083

Weighted average common shares outstanding	70,425,027		59,007,191		61,308,046
Diluted effect of share-based compensation	—		182,526		353,727
Diluted effect of stock warrants	—		—		—
Weighted average diluted common shares	70,425,027		59,189,717		61,661,773
Diluted (loss) earnings per common share	$	(1.41)	$	0.43	$	0.62


	Six Months Ended
	June 30, 2020		June 30, 2019
	(Dollars in thousands, except per share data)
Basic
Net (loss) income	$	(73,351)	$	77,245

Less: Dividends and undistributed earnings allocated to participating securities	(356)		(791)
Net (loss) income allocated to common stockholders	$	(73,707)	$	76,454

Weighted average common shares outstanding	64,716,109		61,645,940
Basic (loss) earnings per common share	$	(1.14)	$	1.24

Diluted
Net (loss) income allocated to common stockholders	$	(73,707)	$	76,454

Weighted average common shares outstanding	64,716,109		61,645,940
Diluted effect of share-based compensation	—		334,193
Diluted effect of stock warrants	—		—
Weighted average diluted common shares	64,716,109		61,980,133
Diluted (loss) earnings per common share	$	(1.14)	$	1.23

The impact of stock options, which are anti-dilutive, are excluded from the computations of diluted earnings per share. The dilutive impact of these securities could be included in future computations of diluted earnings per share if the market price of the common stock increases. As a result of incurring a net loss for the three and six months ended June 30, 2020, potential common shares of 234,518 and 163,832, respectively, were excluded from diluted loss per share because the effect would have been anti-dilutive.