Capital Stock

12 Months Ended

Dec. 31, 2019

Preferred Stock

In January 2019, the Company issued 8,000,000 shares of 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share, or the Series D Preferred Stock, at a public offering price of $25.00 per share and for net proceeds to us of $193 million. The Series D Preferred Stock is redeemable at $25.00 per share plus accrued and unpaid dividends (whether or not authorized or declared) exclusively at the Company’s option commencing in March 30, 2024, subject to the Company’s right, under limited circumstances, to redeem the Series D Preferred Stock prior to that date. The initial dividend rate for the Series D Preferred Stock, from and including January 23, 2019, to but not including March 30, 2024, will be equal to 8.00% per annum of the $25.00 liquidation preference per share (equivalent to the fixed annual rate of $2.00 per share). On and after March 30, 2024, dividends on the Series D Preferred Stock will accumulate at a percentage of the $25.00 liquidation preference equal to an annual floating rate of the three-month LIBOR plus a spread of 5.379% per annum. The Series D Preferred Stock is entitled to receive, when and as declared, a dividend at a rate of 8.00% per year on the $25.00 liquidation preference before the common stock is paid any dividends and is senior to the common stock with respect to distributions upon liquidation, dissolution or winding up.

The Company declared dividends to Series A preferred stockholders of $12 million, or $2.00 per preferred share during the years ended December 31, 2019 and 2018, respectively.

The Company declared dividends to Series B preferred stockholders $26 million, or $2.00 per preferred share during the years ended December 31, 2019 and 2018, respectively.

The Company declared dividends to Series C preferred stockholders of $20 million and $6 million, or $1.94 and $0.54, respectively, per preferred share during the years ended December 31, 2019 and 2018.

The Company declared dividends to Series D preferred stockholders of $15 million, or $1.87 per preferred share during the year ended December 31, 2019.

Common Stock

In February 2018, our Board of Directors reauthorized $100 million under our share repurchase program, or the Repurchase Program. Such authorization does not have an expiration date and, at present, there is no intention to modify or otherwise rescind such authorization. Shares of our common stock may be purchased in the open market, including through block purchases, through privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The timing, manner, price and amount of any repurchases will be determined at our discretion and the program may be suspended, terminated or modified at any time for any reason. Among other factors, the Company intends to only consider repurchasing shares of our common stock when the purchase price is less than the last publicly reported book value per common share. In addition, the Company does not intend to repurchase any shares from directors, officers or other affiliates. The program does not obligate the Company to acquire any specific number of shares, and all repurchases will be made in accordance with Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of stock repurchases.

Pursuant to our Repurchase Program, the Company repurchased approximately 883 thousand shares of its common stock at an average price of $16.81 per share for a total of $15 million during the year ended December 31, 2018. The Company did not repurchase any of its common stock during the year ended December 31, 2019. The approximate dollar value of shares that may yet be purchased under the Repurchase Program is $85 million as of December 31, 2019.

The Company declared dividends to common shareholders of $377 million and $375 million, or $2.00, per share during the years ended December 31, 2019 and December 31, 2018, respectively.

Earnings per share for the years ended December 31, 2019, 2018 and 2017 respectively, are computed as follows:



	For the Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
	(dollars in thousands)
Numerator:
Net income available to common shareholders	$	340,847	$	368,440	$	491,184
Effect of dilutive securities:	—		—		—
Dilutive net income available to common shareholders	$	340,847	$	368,440	$	491,184

Denominator:
Weighted average basic shares	187,156,990		187,146,170		187,780,355
Effect of dilutive securities	1,249,454		602,692		506,965
Weighted average dilutive shares	188,406,444		187,748,862		188,287,320

Net income per average share attributable to common stockholders - Basic	$	1.82	$	1.97	$	2.62
Net income per average share attributable to common stockholders - Diluted	$	1.81	$	1.96	$	2.61