Earnings Per Common Share

3 Months Ended

Mar. 31, 2022

The following table summarizes the calculation of basic and diluted (loss) earnings per common share:


	Three months ended March 31,
(In thousands, except per share data)		2022		2021
Net (loss) income		$	(16,747)	$	108,078
Less: Preferred stock dividends		3,431		1,969
Net (loss) income available to common shareholders		(20,178)		106,109
Less: Earnings allocated to participating securities		—		579
(Loss) earnings applicable to common shareholders		$	(20,178)	$	105,530

Weighted-average common shares outstanding - basic		147,394		89,809
Effect of dilutive securities		—		299
Weighted-average common shares outstanding - diluted		147,394		90,108

Basic (loss) earnings per common share		$	(0.14)	$	1.18
Diluted (loss) earnings per common share		(0.14)		1.17

Earnings per common share is calculated under the two-class method in which all earnings (distributed and undistributed) are allocated to common stock and participating securities based on their respective rights to receive dividends. Webster may grant restricted stock, restricted stock units, non-qualified stock options, incentive stock options, or stock appreciation rights to certain employees and directors under its stock-based compensation programs, which entitle recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities.

Potential common shares from stock options and performance-based restricted stock awards that were not included in the computation of dilutive earnings per common share because they were anti-dilutive under the treasury stock method were 341,904 for the three months ended March 31, 2022. There were no anti-dilutive stock options nor performance-based restricted shares excluded from the effect of dilutive securities for the three months ended March 31, 2021.