Net Income Attributable to Green Brick Partners, Inc. Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Net Income Attributable to Green Brick Partners, Inc. Per Share

11. EARNINGS PER SHARE

The Company’s RSAs have the right to receive forfeitable dividends on an equal basis with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method.

Basic earnings per common share is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of restricted stock awards during each period. Net income applicable to common stockholders is net income adjusted for preferred stock dividends including dividends declared and cumulative dividends related to the current dividend period that have not been declared as of period end. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awards.

The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income attributable to Green Brick Partners, Inc.	$	73,520	$	48,507	$	236,353	$	126,739
Preferred dividends	(719)		—		(2,156)		—
Net income applicable to common stockholders	72,801		48,507		234,197		126,739
Weighted-average number of common shares outstanding - basic	46,032		50,732		48,205		50,689
Basic net income attributable to Green Brick Partners, Inc. per common share	$	1.58	$	0.96	$	4.86	$	2.50
Weighted-average number of common shares outstanding - basic	46,032		50,732		48,205		50,689
Dilutive effect of stock options and restricted stock awards	358		347		339		357
Weighted-average number of common shares outstanding - diluted	46,390		51,079		48,544		51,046
Diluted net income attributable to Green Brick Partners, Inc. per common share	$	1.57	$	0.95	$	4.82	$	2.48

The following shares which could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Antidilutive options to purchase common stock and restricted stock awards	—	—	(17)	—