Earnings Per Share ("EPS")

12 Months Ended

Dec. 31, 2022

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, employee stock purchase program (“ESPP”) shares, or other contracts to issue common stock were exercised or converted to common stock that would then share in earnings. For the years ended December 31, 2022, 2021 and 2020, stock options and restricted share awards of 693,668, 772,707, and 827,405 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 Note 10 “Subordinated Debentures and Convertible Notes” of the Notes to Consolidated Financial Statements for additional information regarding convertible notes issued). For the years ended December 31, 2022, 2021 and 2020, 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 years ended December 31, 2022, 2021 and 2020 as the conversion price exceeded the market price of the Company’s stock.

In 2019, the Company’s Board of Directors approved a share repurchase program that authorized the Company to repurchase up to $50.0 million of its common stock for each repurchase program. In July 2021, the Company’s Board of Directors approved another share repurchase program that authorizes the Company to repurchase an additional $50.0 million of its common stock. In January 2022, the Company’s Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to an additional $50.0 million of its common stock. During the year ended December 31, 2020, the Company repurchased 2,716,034 shares of common stock totaling $36.2 million. During the year ended December 31, 2021, the Company repurchased 3,682,268 shares of common stock totaling $50.0 million. During the year ended December 31, 2022, the Company repurchased 1,038,986 shares of common stock totaling $14.7 million.

The following table shows the computation of basic and diluted EPS for the years ended December 31, 2022, 2021, and 2020.


	Net Income (Numerator)		Weighted-Average Shares (Denominator)	Earnings Per Share
	(Dollars in thousands, except share and per share data)
2022
Basic EPS - common stock	$	218,277	119,824,970	$	1.82
Effect of dilutive securities:
Stock options, restricted stock, and ESPP shares			647,375
Diluted EPS - common stock	$	218,277	120,472,345	$	1.81

2021
Basic EPS - common stock	$	204,572	122,321,768	$	1.67
Effect of dilutive securities:
Stock options, restricted stock, and ESPP shares			811,257
Diluted EPS - common stock	$	204,572	123,133,025	$	1.66

2020
Basic EPS - common stock	$	111,515	123,501,401	$	0.90
Effect of dilutive securities:
Stock options, restricted stock, and ESPP shares			387,942
Diluted EPS - common stock	$	111,515	123,889,343	$	0.90