Earnings per Common Share

3 Months Ended

Mar. 31, 2020

Earnings per Common Share

Earnings per Common Share

22. Earnings per Common Share

Net earnings, less any preferred dividends accumulated for the period (whether or not declared), is allocated between the common stock and participating securities pursuant to the two-class method, if applicable. Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested restricted shares. The Company calculated basic earnings per common share using the treasury method instead of the two-class method since there were no instruments which qualified as participating securities during the three months ended March 31, 2020 or 2019.

Diluted earnings per common share is computed in a similar manner, except that first the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares, excluding the participating securities, were issued using the treasury stock method. During the three months ended March 31, 2020 and 2019, RSUs were the only potentially dilutive non-participating instruments issued by Hilltop. Next, the Company determines and includes in the diluted earnings per common share calculation the more dilutive effect of the participating securities using the treasury stock method or the two-class method. Undistributed losses are not allocated to the nonvested share-based payment awards (the participating securities) under the two-class method as the holders are not contractually obligated to share in the losses of the Company.

The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data).

	Three Months Ended March 31,
	2020		2019
Basic earnings per share:
Income from continuing operations	$	46,485	$	33,426
Income from discontinued operations		3,151		5,360
Income attributable to Hilltop	$	49,636	$	38,786
Weighted average shares outstanding - basic		90,509		93,669
Basic earnings per common share:
Income from continuing operations	$	0.51	$	0.36
Income from discontinued operations		0.04		0.05
	$	0.55	$	0.41
Diluted earnings per share:
Income from continuing operations	$	46,485	$	33,426
Income from discontinued operations		3,151		5,360
Income attributable to Hilltop	$	49,636	$	38,786
Weighted average shares outstanding - basic		90,509		93,669
Effect of potentially dilutive securities		41		—
Weighted average shares outstanding - diluted		90,550		93,669
Diluted earnings per common share:
Income from continuing operations	$	0.51	$	0.36
Income from discontinued operations		0.04		0.05
	$	0.55	$	0.41