Earnings Per Share

6 Months Ended

Jun. 30, 2022

Note 13 — Earnings Per Share

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that shared in earnings.

The following table presents the basic and diluted earnings per share calculations for the three and six months ended June 30, 2022 and 2021:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands, except per share data)				(In thousands, except per share data)
Basic EPS:
Net income attributable to common stockholders	$	10,645	$	9,453	$	13,766	$	12,849
Less: undistributed earnings attributable to participating securities		164		3,571		212		4,854
Net earnings attributable to common stock	$	10,481	$	5,882	$	13,554	$	7,995
Weighted average common shares outstanding		31,917		20,087		31,904		20,087
Basic earnings per common share	$	0.33	$	0.29	$	0.42	$	0.40
Diluted EPS:
Net income attributable to common stockholders	$	10,645	$	9,453	$	13,766	$	12,849
Weighted average common shares outstanding		31,917		20,087		31,904		20,087
Add dilutive effects for assumed conversion of Series A preferred stock		—		11,688		—		11,688
Add dilutive effects for warrants		1,986		1,985		2,057		1,786
Add dilutive effects for stock options		4		3		4		2
Add dilutive effects of unvested restricted stock awards		150		197		165		121
Weighted average diluted common shares outstanding		34,057		33,960		34,130		33,684
Diluted income per common share	$	0.31	$	0.28	$	0.40	$	0.38

The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would have been anti-dilutive (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options		773		773		773		773
Unvested restricted stock awards		125		—		125		—
Unvested performance-based stock units		103		—		103		—
Share equivalents excluded from EPS		1,001		773		1,001		773