Earnings Per Common Share

9 Months Ended

Sep. 30, 2022

9. Earnings Per Common Share

The Company calculates earnings per share using the two-class method. The two-class method allocates net income to each class of common stock and participating security according to common dividends declared and participation rights in undistributed earnings. Participating securities consist of nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents.

A summary of the information used in the computation of earnings per common share follows.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2022		2021		2022		2021
Numerator:
Net income to common shareholders	$	135,389	$	129,582	$	380,302	$	325,472
Net income allocated to participating securities - basic and diluted		2,014		2,419		5,776		6,650
Net income allocated to common shareholders - basic and diluted	$	133,375	$	127,163	$	374,526	$	318,822
Denominator:
Weighted-average common shares - basic		85,706		86,834	$	86,141	$	86,800
Dilutive potential common shares		314		172		298		151
Weighted-average common shares - diluted		86,020		87,006	$	86,439	$	86,951
Earnings per common share:
Basic	$	1.56	$	1.46	$	4.35	$	3.67
Diluted	$	1.55	$	1.46	$	4.33	$	3.67

Potential common shares consist of stock options, nonvested performance-based awards, nonvested restricted stock units, and restricted share awards deferred under the Company’s nonqualified deferred compensation plan. These potential common shares do not enter into the calculation of diluted earnings per share if the impact would be antidilutive, i.e., increase earnings per share or reduce a loss per share. Potential common shares totaling 2,212 and 5,671 for the three and nine months ended September 30, 2022, respectively, and 796 for the nine months ended September 30, 2021, did not enter the calculation of diluted earnings per share as the impact would have been anti-dilutive. For the three months ended September 30, 2021, there were no potential common shares that would have had an anti-dilutive impact on earnings per share.