Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share

Earnings Per Share

Note 12 — Earnings Per Share

Basic earnings per shares are calculated by dividing net income by the weighted-average shares of common stock outstanding during each period, excluding non-vested restricted shares. Our diluted earnings per share are based on the weighted-average shares of common stock outstanding during each period plus the maximum dilutive effect of common stock issuable upon exercise of stock options or vesting of restricted stock units. Stock options and unvested restricted stock units are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive. The weighted-average number of shares and equivalents are determined after giving retroactive effect to stock dividends and stock splits.

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars and shares in thousands, except for per share amounts)	2021		2020		2021		2020
Basic earnings per common share:
Net income	$	122,788	$	95,221	$	368,697	$	34,396
Weighted-average basic common shares		70,066		70,905		70,643		49,330
Basic earnings per common share	$	1.75	$	1.34	$	5.22	$	0.70
Diluted earnings per common share:
Net income	$	122,788	$	95,221	$	368,697	$	34,396
Weighted-average basic common shares		70,066		70,905		70,643		49,330
Effect of dilutive securities		510		171		465		306
Weighted-average dilutive shares		70,576		71,076		71,108		49,636
Diluted earnings per common share	$	1.74	$	1.34	$	5.19	$	0.69

The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive under the treasury stock method as follows:

	Three Months Ended September 30,										Nine Months Ended September 30,
(Dollars in thousands)	2021					2020					2021					2020
Number of shares					57,169					141,116					60,546					136,844
Range of exercise prices	$	87.30	to	$	91.35	$	52.28	to	$	91.35	$	87.30	to	$	91.35	$	61.42	to	$	91.35