Earnings Per Share ("EPS")

12 Months Ended

Dec. 31, 2019

EARNINGS PER SHARE (“EPS”)

Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding equity awards or convertible notes and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options, convertible notes, or other contracts to issue common stock were exercised or converted to common stock that would then share in the Company’s earnings. For the years ended December 31, 2019 and 2018, stock options and restricted shares awards of approximately 894 thousand and 617 thousand shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were anti-dilutive.

In 2018, the Company issued $217.5 million in convertible senior notes maturing on May 15, 2038. The convertible notes can be converted into the Company’s shares of common stock at an initial rate of 45.0760 shares per $1,000 principal amount of the notes (See footnote 10 “Subordinated Debentures and Convertible Notes” for additional information regarding convertible notes issued). For the year ended December 31, 2019 and 2018, shares related to the convertible notes issued were not included in the Company’s diluted EPS calculation. In accordance with the terms of the convertible notes and settlement options available to the Company, no shares would have been delivered to investors of the convertible notes upon assumed conversion based on the Company’s common stock price during the year ended December 31, 2019 and 2018.

In 2018, the Company’s Board of Directors approved a share repurchase program that authorized the Company to repurchase up to $100.0 million in common stock and then approved another share repurchase program that authorized the Company to repurchase up to $50.0 million in common stock. During the year ended December 31, 2018, the Company repurchased 9,002,453 shares of common stock totaling $150.0 million. The Company’s Board of Directors approved another share repurchase program in June 2019 that authorized the Company to repurchase up to $50 million of its common stock. During the year ended December 31, 2019, the Company repurchased 943,094 shares of common stock totaling $13.8 million. The repurchased shares were recorded as treasury stock and reduced the total number of common shares outstanding.

The following table shows the computation of basic and diluted EPS for the years ended December 31, 2019, 2018, and 2017:



	Net Income (Numerator)		Weighted Average Shares (Denominator)	Earnings Per Share
	(Dollars in thousands, except share and per share data)
2019
Basic EPS - common stock	$	171,040	126,598,564	$	1.35
Effect of dilutive securities:
Stock options, restricted stock, performance awards, and ESPP shares			276,756
Diluted EPS - common stock	$	171,040	126,875,320	$	1.35

2018
Basic EPS - common stock	$	189,589	131,716,726	$	1.44
Effect of dilutive securities:
Stock options, restricted stock, performance awards, and ESPP shares			237,466
Diluted EPS - common stock	$	189,589	131,954,192	$	1.44

2017
Basic EPS - common stock	$	139,445	135,348,938	$	1.03
Effect of dilutive securities:
Stock options, restricted stock, and performance awards			336,031
Diluted EPS - common stock	$	139,445	135,684,969	$	1.03