Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per ShareBasic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B Non-Voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of September 30, 2021, the Company did not have any Class B Non-Voting common stock outstanding.

Diluted earnings per share takes into account the potential conversion of stock options and restricted stock units using the treasury stock method and convertible notes using the if-converted method. For the three and nine months ended September 30, 2021, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 1,083,635 and 1,032,305 shares related to restricted stock units for which the performance metric had yet to be achieved as of September 30, 2021 and 2020, respectively.

The following table sets forth the reconciliation of basic and diluted earnings per share (in thousands, except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Basic earnings per share:
Numerator
Net income	$	107,337	$	120,395	$	284,851	$	405,171
Preferred stock dividends	(7,331)		(3,843)		(19,010)		(11,531)
Net income available to common stockholders	$	100,006	$	116,552	$	265,841	$	393,640
Denominator
Weighted-average common shares outstanding	114,122,512		113,778,533		114,071,951		113,647,585
Basic earnings per share	$	0.88	$	1.02	$	2.33	$	3.46
Diluted earnings per share:
Numerator
Net income	$	107,337	$	120,395	$	284,851	$	405,171
Preferred stock dividends	(7,331)		(3,843)		(19,010)		(11,531)
Net income available to common stockholders	$	100,006	$	116,552	$	265,841	$	393,640
Denominator
Number of shares used in basic computation	114,122,512		113,778,533		114,071,951		113,647,585
Weighted-average effect of dilutive securities	259,109		172,569		343,218		281,190
Number of shares used in per share computation	114,381,621		113,951,102		114,415,169		113,928,775
Diluted earnings per share	$	0.87	$	1.02	$	2.32	$	3.46