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Earnings Per Common Share
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Common Share Earnings Per Common Share
The following table summarizes the calculation of basic and diluted earnings per common share:
 Three months ended September 30,Nine months ended September 30,
(In thousands, except per share data)2022202120222021
Net income$233,968 $95,713 $399,532 $297,826 
Less: Preferred stock dividends4,162 1,968 11,756 5,906 
Net income available to common shareholders229,806 93,745 387,776 291,920 
Less: Earnings allocated to participating securities2,128 574 3,562 1,661 
Earnings applicable to common shareholders$227,678 $93,171 $384,214 $290,259 
Weighted-average common shares outstanding - basic173,868 90,038 165,743 89,960 
Effect of dilutive securities76 194 70 226 
Weighted-average common shares outstanding - diluted173,944 90,232 165,813 90,186 
Basic earnings per common share$1.31 $1.03 $2.32 $3.23 
Diluted earnings per common share1.31 1.03 2.32 3.22 
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 97,294 and 330,688 for the three and nine months ended September 30, 2022, respectively, and zero and 47,161 for the three and nine months ended September 30, 2021, respectively.