EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2020

EARNINGS PER COMMON SHARE [Abstract]

EARNINGS PER COMMON SHARE

Note 3 — Earnings per Common Share:

Basic earnings per common share is computed by dividing earnings, after the deduction of dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period.

The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units not classified as participating securities. Participating securities are defined by ASC 260, Earnings Per Share, as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents and are included in the computation of earnings per share pursuant to the two-class method.

Weighted average shares of unvested restricted common stock considered to be participating securities totaled 39,093 and 45,100 for the three and six months ended June 30, 2020, respectively, and 42,267 and 44,870 for the three and six months ended June 30, 2019, respectively. Such participating securities are allocated a portion of income, but not losses under the two-class method. As of June 30, 2020, there were 332,782 shares of restricted stock units and 670,624 stock options outstanding and considered to be potentially dilutive securities.

The components of the calculation of basic earnings per share and diluted earnings per share are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)		2020		2019		2020		2019
Net income/(loss)	$	64,358	$	(16,523)	$	97,377	$	(5,626)
Weighted average common shares outstanding:
Basic		28,469,969		29,220,345		28,812,299		29,200,897
Diluted		28,639,780		29,220,345		28,989,146		29,200,897

Reconciliations of the numerator of the basic and diluted earnings per share computations are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)		2020		2019		2020		2019
Net income/(loss) allocated to:
Common Stockholders	$	64,272	$	(16,523)	$	97,227	$	(5,626)
Participating securities		86		—		150		—
	$	64,358	$	(16,523)	$	97,377	$	(5,626)

For the three and six months ended June 30, 2020 earnings per share calculations, there were 169,811and 176,847 dilutive equity awards outstanding, respectively. For the three and six months ended June 30, 2019 earnings per share calculations, there were no dilutive equity awards outstanding. Awards of 965,994 and 891,853 for the three and six months ended June 30, 2020, respectively, and 738,007 and 645,728 for the three and six months ended June 30, 2019, respectively, were not included in the computation of diluted earnings per share because inclusion of these awards would be anti-dilutive.