Earnings Per Common Share

12 Months Ended

Dec. 31, 2022

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


	Years ended December 31,
(In thousands, except per share data)	2022		2021		2020
Net income	$	644,283	$	408,864	$	220,621
Less: Preferred stock dividends	15,919		7,875		7,875
Net income available to common stockholders	628,364		400,989		212,746
Less: Earnings allocated to participating securities	5,672		2,302		1,272
Earnings applicable to common stockholders	$	622,692	$	398,687	$	211,474

Weighted-average common shares outstanding - basic	167,452		89,983		89,967
Add: Effect of dilutive stock options and restricted stock	95		223		184
Weighted-average common shares outstanding - diluted	167,547		90,206		90,151

Basic earnings per common share	$	3.72	$	4.43	$	2.35
Diluted earnings per common share	3.72		4.42		2.35

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. The Company 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 performance-based restricted stock that were not included in the computation of dilutive earnings per common share because they were anti-dilutive under the treasury stock method were 176,177, 56,829, and 43,508 for the years ended December 31, 2022, 2021, and 2020, respectively. Additional information regarding stock options and restricted stock awards can be found within Note 20: Share-Based Plans