Earnings Per Common Share

12 Months Ended

Dec. 31, 2022

Earnings per Common Share

Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows.


Years ended December 31, (amounts in thousands, except per share data)	2022		2021		2020
Numerator:
Net income	$	469,014	$	1,160,513	$	880,690
Preferred stock dividends	9,029		4,736		9,734
Net income attributable to SLM Corporation common stock	$	459,985	$	1,155,777	$	870,956
Denominator:
Weighted average shares used to compute basic EPS	258,439		314,993		383,705
Effect of dilutive securities:
Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) (1)(2)	3,064		4,919		3,490
Weighted average shares used to compute diluted EPS	261,503		319,912		387,195

Basic earnings per common share	$	1.78	$	3.67	$	2.27

Diluted earnings per common share	$	1.76	$	3.61	$	2.25

(1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method.

(2) For the years ended December 31, 2022, 2021, and 2020, securities covering approximately 1 million shares, 1 million shares, and no shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive.